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Autonomous Car Chipmakers Idea Proposal (INTC, NVDA)

Autonomous Car Chipmakers Idea Proposal (INTC, NVDA)
 

Who will win the race between Nvidia and Intel to be the driving force behind autonomous cars?

 

Report Available: October 18, 2017

 

Blueshift’s initial research found NVDA taking the lead in self-driving car development with its superfast graphics processors. INTC’s acquisition of Mobileye, however, has thrust the chipmaker back into the conversation. NVDA and INTC each have key partnerships with auto industry leaders like Toyota and BMW, but much is left to be sorted out in a market that could top $70 billion by 2030.

 

Observations

  1. NVDA, a chipmaker best known for graphics processors, has pushed itself to the forefront of self-driving car development. Its Drive PX system is able to combine data from cameras, radar, sensors and other sources with an incredible eight teraflops of computing power. The technology helped boost NVDA’s revenues from its autonomous driving division by 19.3% in Q2 to $142 million, still a small piece of its $2.2 billion in overall sales for the quarter.
  2. Rival INTC, whose chips are ubiquitous in PCs and data centers, has thrust itself into the battle for self-driving cars with its $15.3 billion acquisition of Mobileye, a developer of cameras, sensors and software that has been a pioneer of Advanced Driver Assistance Systems. The two companies plan to build a fleet of 100 self-driving test vehicles and will work on a new system that combines INTC’s chips with Mobileye’s technology.
  3. Partnerships with auto industry leaders will be key in determining whether NVDA’s or INTC’s technology becomes the standard for self-driving cars. NVDA’s early lead and raw processing power advantages have led to wins with Toyota (TYO:7203), Honda (TYO:7267), DDAIY’s Mercedes, TSLA, and others. The company also has deals with major industry suppliers like Bosch (BOM:500530) and TRW. INTC is working with BMW and has partnered with DLPH, a top supplier of electronics and software to car makers.
  4. The market for vehicle systems, data and services could hit $70 billion over the next decade. However, it is still very early in the game with numerous titans of industry jockeying for a piece of the pie. F plans to have a fully autonomous car in operation for a ride-hailing service by 2021, while GM said it would test self-driving taxis on public roads within a year. GOOG/GOOGL, AAPL, Uber, and BIDU are among the companies working on self-driving technology.

 

Will INTC or NVDA be the brains behind the first wave of self-driving cars? How does INTC’s acquisition of Mobileye change the competitive landscape? Does INTC’s cloud computing and data center expertise give it an advantage over NVDA? Will automakers that have started down the road with NVDA be willing to switch?  To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Auto makers, Auto industry suppliers, Self-driving technology developers, and Industry specialists.

 

Companies: Intel Corp. (INTC), Nvidia Corp. (NVDA), Alphabet Inc. (GOOG/GOOGL), Apple Inc. (AAPL), Baidu Inc. (BIDU), BayerischeMotorenWerke AG (ETR:BMW), Daimler AG (DDAIY), Delphi Automotive, PLC (DLPH), Honda Motor Co. Ltd. (TYO:7267), Tesla Inc. (TSLA), Toyota Motor Corp. (TYO:7203), ZF TRW Automotive Holdings Corp (TRW)

 

Research Begins: October 2, 2017