What do Analysts Say about: Intel Corporation (NASDAQ:INTC)

Additionally, Intel’s crown jewel and historically a critical enabler of its competitive advantages over the competition – its Technology and Manufacturing Group (TMG) – has also struggled to execute for years now; critical manufacturing technologies that are used to build virtually all its processor products nearly always see delays now (impacting competitiveness/product schedules), and even when they are finally forced to see the light of day, there seem to be extended yield challenges – negatively impacting the company’s profitability and/or its ability to apply its newest technologies to key product segments. Now, Intel makes a grand entry into the market.

Chip-maker Intel is in the process of snapping up the Israeli company widely considered to be at the focal point of the vehicle industry’s move to autonomous driving.

Like the Mobileye deal, the McAfee purchase was a long-term bet, focused significantly on Intel’s expectation that the burgeoning Internet of Things would create a demand for securing billions of newly connected devices. BMW announced in January of this year that it would deploy 40 self-driving vehicles for tests in the United States and Europe.

The investment analysts also raised their concerns regarding the acquisition of Intel and Mobileye.

To be sure, before self-driving cars dominate the road, unresolved debates over who owns the data, how it can be shared and whether drivers can opt out over privacy concerns need to be ironed out.

While leveraging Mobileye to strengthen its existing collaboration with BMW, Intel can also leverage Mobileye’s close relationships with carmakers and avoid the lengthy product verification process that new market entrants are often being subjected to.

Another notable technology that Mobileye holds is Road Experience Management (REM), which a mapping software that was released previous year.

“The Mobileye mono-camera was inspired by human vision, which only uses both eyes to obtain depth perception for very short distances”, Shashua said on the company’s About page. Driverless cars utilize a diversity of systems to distinguish their surroundings, such as radar, laser light, and GPS. The tech giants like Alphabet Inc’s Waymo and Chinese tech giant Baidu Inc.

TechCrunch said Mobileye has long established itself as a leader in computer vision for autonomous driving technology, which includes sensor fusion, mapping, front- and rear-facing camera tech.

In the high-profile case of the Tesla that drove into a semi a year ago, Mobileye’s camera system got some of the blame.

The addition of Mobileye’s technology “will considerably strengthen Intel’s position in the automotive chip market”, Trendforce stated.

“When we established Mobileye, we had an absurd little dream, to fight against the traffic accidents which claim the lives of a million and a half people each year”, Aviram said during his meeting with Katz. The company’s technologies are used by numerous world’s leading automobile manufacturers, as they look for ways to effectively complete with Google, Apple and Telsa, all of which are developing autonomous vehicle technologies. The fifth gen chips will release by 2021. In November previous year it partnered with MobilEye and Delphi to develop and supply chips and software, based around MobilEye’s EyeQ4 and EyeQ5 chips. It has put a lot of pressure on other chipmakers like Intel, Nvidia, and Mobileye. “So they’re pretty well positioned to be a pretty good supplier for the whole automotive industry, all the way from over-the-air software upgrades to autonomous driving”. It will also provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers. He added that average autonomous vehicle will create about 40 gigabytes of data each minute. Overall, while Canaccord agrees with management’s long-term decision to invest for growth; Canaccord’s short and medium term concerns remain for Intel’s growth trajectory such as exiting 2016 with “peak” PC margins and into a period of DCG margin compression and increased capital investment.