INTC – Intel’s acquisition of Mobileye opens up opportunities to the chip manufacturer for taking on Google and Tesla.
Technology makes it easier for trading stocks online from the comfort of your home. Efficient stock trading software helps bring the stock market to you. It’s amazing that anyone can learn to trade stocks with such advanced software. Software also makes autonomous vehicles a reality, and it’s something all the tech majors have become obsessed with. Now, processor manufacturer Intel wants to be part of the equation as well.
Intel (INTC) has now made it clear that it’s serious about entering the autonomous car market and competing with the other tech and automobile giants out there such as Tesla, Apple, Google, Ford and General Motors. It recognizes the opportunity here and wants a slice of the pie. That’s why it has acquired Israeli autonomous vehicle tech company Mobileye ($MBLY) for $15.3 billion.
Vital Technology Transfer for Both Companies
Intel now has the technology to do it. It already possesses semiconductor capabilities and a wide range of R&D capabilities which could help Mobileye’s innovations. Certainly the latter’s investors think so which is why $MBLY stock soared 28% on Monday in active trade. Together, the alliance should have enough to tackle the might of innovative electric car manufacturer Tesla ($TSLA) and tech giant Google ($GOOGL).
These are the two companies at the forefront of self-driving technology, not that the others such as Apple ($AAPL) are far behind. Intel acknowledges that the future of the automobile rests in computing power rather brute engine horsepower. However, Intel’s investors weren’t impressed by the deal and the company’s shares were down 2.1%, closing at $35.16, a three-month low. However, that’s the initial reaction, and it could all change when the potential of this massive $15.3 billion deal begins to take effect.
Crucially, Mobileye was once Tesla’s prominent partner and so it could shed some precious information on the technology Elon Musk’s company employs. That could help Intel get on par with $TSLA soon by accelerating its technology.
Google and Tesla Have Long Entered the Scene
Google has its Waymo division for autonomous cars which is testing a specifically designed two-seater vehicle fitted with self-driving software and hardware. All it takes for the vehicle to move is pressing a button. There is no steering wheel or break pedal here. Tesla has reached a much more advanced stage whereby it has already launched self-driving features in its Model S sedan. These features get updates too on the depth of autopilot capabilities.
Intel Could Carve Its Own Niche in Driverless Tech
And INTC doesn’t necessarily need to have its own autonomous car built. There’s another goal for Intel too. It wants to lead the way in making processors for these autonomous cars. Processors would power the various functions in a self-driving car including communication between two autonomous vehicles, and Intel wants to become the manufacturer that customers will contact for providing these processors for other driverless car manufacturers.
Just like how PC manufacturers and users looked up to Intel to power their systems, driverless car manufacturers must look to Intel for powering their autonomous systems. With a strong technical partner such as Mobileye combined with its own technical prowess, the possibilities are plenty for this experienced chip manufacturer.