Tech giants Qualcomm (QCOM) and Alphabet (GOOGL) are partnering to power automobiles with automated AI (artificial intelligence) voice assistants. The companies will work together to offer chips and software that will enable automakers to have their own, unique AI voice assistants in vehicles.
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Qualcomm and Alphabet have been in a long-standing relationship, wherein Qualcomm provides the chips used in Google’s Android smartphones. Qualcomm has forayed into the automotive sector with a vision to provide chips that can power a car’s dashboard as well as automated driving systems (ADS). Currently, its chips are being used by automakers such as General Motors (GM).
As part of the new partnership, the two companies will work in collaboration to develop an Android Automotive OS, capable of functioning effectively on Qualcomm’s chips. Until now, vehicles were able to display the apps from a phone, when connected to the car’s systems. The new technology, which Qualcomm and Alphabet aim to develop, will create AI voice assistants that will operate without the driver’s phone’s support.
Qualcomm Launches New Chips for Autos
Apart from announcing the partnership, Qualcomm also launched two new chips yesterday meant to power autos. The Snapdragon Cockpit Elite will power dashboards while the Snapdragon Ride Elite will power self-driving features. Along with the launch, Qualcomm also announced that Mercedes-Benz Group (MBGAF) (DE:MBG) could be a potential buyer of the Snapdragon Elite Cockpit chip for its future vehicles.
Is QCOM a Good Stock to Buy Now?
Analysts remain divided on Qualcomm stock, as headwinds persist for the automotive sector. On TipRanks, QCOM stock has a Moderate Buy consensus rating based on 12 Buys, eight Holds, and one Sell rating. The average Qualcomm price target of $214.13 implies 23.7% upside potential from current levels. Year-to-date, QCOM shares have gained 21.5%.
Is Google Good Stock to Buy?
Wall Street is highly optimistic about Google stock’s trajectory based on its well-established business model. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 29 Buys versus nine Hold ratings. The average Alphabet Class A price target of $200.50 implies 21.4% upside potential from current levels. Year-to-date, GOOGL shares have gained 18.5%.
