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BDSwiss | January 17, 2017

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Intel and self-driving cars - BDSwiss

Intel and self-driving cars
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Intel is not only the world’s largest producer of microprocessors, they have also identified self-driving cars as an important and long-term growth opportunity. Intel already has orders worth billions of dollars for this new technology.

A good opportunity for Intelintel-bdswiss-small

Intel is in the process of reinventing itself, and the American company already has orders worth more than $1 billion for self-driving cars. Although Intel will likely not be involved in the entire production cycle of these automobiles, the fact that the orders are so big is a definite statement. Intel has now set their course for the future, even if actual profit from this plan is still far off.

Is it enough?

In the last few years, Intel has been struggling with the decline in PC business. This has been declining for years. In all likelihood, the new business model with self-propelled cars will not be able to offset the downturn of the Intel PC division in the foreseeable future. However, it is still far from clear whether Intel is actually establishing itself in the new and very dynamic market. This is why Intel is also focusing on other growth opportunities, such as expanding its own data centers. And in this area, in the days of Big Data, a true “gold rush” has broken out. Intel already belongs to the big players here and can benefit from scale effects.

How to trade Intel

As far as long-term investments are concerned, Intel is now very dependent on both the social and technical development. No one yet knows how fast self-driving cars will be adopted by the consumer. Despite all the euphoira about the new technology, there are many, particularly leagal, questions that still need to be answered. It remains to be seen if Intel can create enough new orders in this segment to generate share price gains in the short-term.

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