July 29, 2016

Intel's Future? - The Stock!


It's been a while -- I thought I'd come back with a company I really like -- Intel.


Article: Intel and Mobileye Are Bringing Driver-less Cars to the Road by 2021



Is Intel Important?

Companies are pushing towards driver-less cars and the more companies that push towards driver-less cars, the surer I am that this isn’t just a gimmick. Intel and Mobileye are going to provide the central processing unit (CPU) while BMW will make the car. Intel failed to adapt to the mobile market early on, but they might have learned their lesson and are aggressively working towards the self-driving market.


It seems like self-driving vehicles are here to stay. BMW has been working on self-driving technology since 2011 and Intel is making a “self-driving platform” – kind of like how CPUs control our operating systems.


Riding In The Back Seat

Intel dominates the CPU market. Intel may also partner with other companies – like Apple. Elon Musk (Tesla and SpaceX CEO) has said on numerous occasions “Apple working on self-driving cars is an open secret.” Intel and Apple partnering on self-driving cars shouldn’t surprise anyone. Apple and Intel already have a good relationship – The iMac and MacBook have Intel CPUs inside. Also, Intel has also been investing and researching self-driving since May 2014.


Every single car-maker is entering this market. Intel has been working closely with Ford, Jaguar's Land Rover and now BMW. Although it’s not clear who will be using Intel’s driver-less platform – it’s likely that many of them will choose Intel.


Crashing In The Back Seat

Reports show that Mercedes is ahead of BMW in autonomous driving. If BMW really is behind, this may negatively impact Intel if Intel doesn’t provide the chips for Mercedes. If Mercedes takes up a big chunk of the market share, it will hurt Intel -- assuming Mercedes isn’t using Intel’s driver-less platform. However, BMW has been working on autonomous cars since 2011 (Mercedes started in 2012) and BMW claims they can make the most intelligent car. Intel chips will likely be inside the iNextthe most intelligent car.


Uber is also buying 100,000 self-driving Mercedes S-Classes (in 2020) – for $10B. Someone at Uber stated that they wanted a lot of autonomous vehicles. Uber did “shop around” but I haven’t found a source that claims Uber “shopped around” at BMW. But since Uber did “shop around” it’s likely they did try to strike a deal with BMW.


Starbucks' S'mores Frappuccino (Sources):
1. Intel & Mobileye Are Bringing Driverless Cars to the Road by 2021
2. BMW needs to catch up to Mercedes' autonomous tech
3. BMW says it's capable to build the "most intelligent car"
4. Uber buying 100,000 self-driving Mercedes S-Classes?


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