American chipmaker Qualcomm (QCOM) and German luxury car manufacturer BMW (DE:BMW) have revealed the outcome of their three-year partnership: an automated driving system. The system is called Snapdragon Ride Pilot and is powered by artificial intelligence based on a software stack jointly developed by both firms.
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The new setup has been integrated into the BMW iX3, an electric SUV that is part of the Munich-based company’s latest electric and advanced vehicle series, Neue Klasse. The system comes with features such as hands-free driving, smart lane change and overtaking, and parking assistance, among others.
However, the vehicle and the features do not offer fully autonomous driving. This means that the driver’s supervision is still required.
Qualcomm Rides into Automated Driving Market
Qualcomm, a chipmaker popular for its Snapdragon processors for mobile phones, is expanding into the automated driving market. The company is competing with rival chipmakers such as Nvidia (NVDA), Mobileye (MBLY), and Ambarella (AMBA) for deals to supply chips and software platforms for car makers’ automated vehicle systems.
The collaboration with BMW is set to get the jointly developed system to over 100 countries by 2026. Already, the technology has been approved in 60 countries, Qualcomm said in a statement.
Qualcomm is aiming to lead the chip supply chain for AI data centers, as major tech companies pour millions of dollars into artificial intelligence to fuel a new wave of innovative products. The company is also seeking to leverage its expertise in energy-efficient chips to compete with established players like Nvidia, Intel (INTC), and Advanced Micro Devices (AMD) in this market.
Is Qualcomm a Buy, Sell, or Hold?
Turning to Wall Street, Qualcomm’s shares currently hold a Moderate Buy consensus recommendation on TipRanks. This is based on 11 Buy, six Hold, and one Sell ratings by 18 Wall Street analysts.
The average QCOM price target is $180.33, which offers a potential 12.62% increase from its current level.
