Qualcomm (QCOM) is expanding its business empire in the auto industry. The semiconductor giant has inked a deal to supply key computing chips to power Renault’s (RNLSY) upcoming electric car infotainment system.
San Diego-based Qualcomm is a key supplier of semiconductors used in powering mobile phones. The company’s chips are also finding their way into the auto industry amid the electric and autonomous car revolution. (See Qualcomm stock charts on TipRanks)
Renault is currently working on Megane E-TECH electric, an electric car, which was showcased at Munich’s IAA Mobility trade show. In addition to featuring the Qualcomm chips, the car will also use software from Alphabet’s (GOOGL) Google.
Qualcomm is to work with Google to design a rich and immersive in-vehicle experience for the upcoming Renault electric vehicle. Thanks to the chip giant’s Snapdragon Automotive Cockpit Platforms, the electric car will feature one-of-its-kind infotainment systems.
The system will come with portrait-size touchscreen displays for audiovisual and navigation systems. Additionally, it will feature in-built Google apps and services and in-vehicle customer applications.
Last month, Canaccord Genuity analyst Michael Walkley reiterated a Buy rating on the stock and raised the price target to $225 from $200, implying 55.57% upside potential.
The analyst remains bullish about the chip giant due to its diversifying revenue growth and strong leadership position in the industry.
Consensus among analysts is a Strong Buy based on 10 Buys and 2 Holds. The average Qualcomm price target of $184.58 implies 27.62% upside potential to current levels.
QCOM scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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