Two international giants are teaming up to tackle a self-driving platform: NXP Semiconductors NV (NASDAQ:NXPI) and Baidu revealed today they will be collaborating in the autonomous driving sphere in a deal where the chip giant will walk into Baidu’s Apollo to offer semiconductor products and solutions. As the biggest automotive semiconductor supplier across the globe, NXP’s move to join forces with the Chinese language search giant’s autonomous driving platform is a savvy way to provide features including millimeter wave radar, V2X, security, smart connectivity and in-vehicle experience technologies.
First announced in April 2017, Apollo is Baidu’s open autonomous driving platform which provides a comprehensive, secure and reliable all-in-one solution supporting all major features and functions of an autonomous vehicle. Baidu refers to Apollo as the Android of the autonomous driving industry, but more open and more powerful, allowing partners to go from zero to one and quickly assemble their own autonomous vehicles and start their product R&D. Apollo has now attracted over 70 global partners.
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Details of the collaboration include:
- NXP will provide semiconductor products and solutions for autonomous driving, millimeter wave radar, V2X, security, smart connectivity and in-vehicle experiences
- Companies will leverage the NXP BlueBox development platform’s low energy consumption, high-performance and functional safety benefits
- NXP and Baidu will collaborate on sensor integration and high-performance processors for deep learning networks
- Baidu’s conversational in-car system, DuerOS for Apollo, will incorporate NXP infotainment solutions for faster time to market and enhanced performance
“The automobile industry in China continues to advance at an amazing pace,” noted Kurt Sievers, executive vice president and general manager of NXP’s automotive business. “NXP is proud to collaborate with Baidu on the success of Apollo platform. We believe that NXP and Baidu have incalculable synergies to bring to the new automotive revolution.”
Li Zhenyu, general manager of Baidu’s Intelligent Driving Group, said, “The collaboration with NXP is a significant step toward the application of Baidu’s autonomous driving and connected car technologies. NXP’s entry into the Apollo platform will inject momentum into our intelligent and autonomous vehicle ecosystem, creating benefits for the intelligent vehicle industry in China and the world.”
Shares of NXP Semiconductors closed yesterday at $116.74, up $0.29 or 0.25%. NXPI has a 1-year high of $118.20 and a 1-year low of $96. The stock’s 50-day moving average is $115.42 and its 200-day moving average is $112.77.
On the ratings front, NXP Semiconductors has been the subject of a number of recent research reports. In a report issued on November 21, Mizuho analyst Vijay Rakesh reiterated a Hold rating on NXPI, with a price target of $110, which reflects a potential downside of -6% from last closing price. Separately, on November 3, Stifel Nicolaus’ Tore Svanberg reiterated a Hold rating on the stock and has a price target of $110.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vijay Rakesh and Tore Svanberg have a yearly average return of 30.4% and 19.9% respectively. Rakesh has a success rate of 72% and is ranked #24 out of 4727 analysts, while Svanberg has a success rate of 77% and is ranked #51.
Overall, 10 research analysts have assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $111.88 which is -4.2% under where the stock closed yesterday.
NXP Semiconductors NV engages in the development, manufacture, and provision of mixed-signal semiconductor solutions. It operates through the following segments: High Performance Mixed Signal; Standard Products; and Corporate and Other. The High Performance Mixed Signal segment designs and markets analog, power management, interface, security technologies, and digital processing systems. The Standard Products segment develops and supplies small signal and power discretes and protection, signal conditioning components, standard logic devices, diodes, transistors, rectifiers, interface protection devices, and bipolar power transistors. The Corporate and Other segment manages and operates manufacturing facilities.