Stellantis (STLA) has inked a multiyear deal to use Qualcomm’s (QCOM) Snapdragon Digital Chassis technology in its future vehicles. In 2021, Fiat Chrysler merged with Peugeot maker PSA Group to form Stellantis.
Stellantis plans to use Qualcomm’s vehicle technology across its 14 brands, starting with Maserati. It says the technology will enable it to deliver an intelligent, immersive, and customizable experience for drivers. Stellantis also counts on the deal to help it meet changing customer expectations for personalized experiences. The Maserati luxury car brand recorded a 2.4% increase in its global market share in 2021.
Stellantis CEO, Carlos Tavares, said, “Qualcomm Technologies’ broad experience in automotive and scale as a semiconductor leader will enable…the fulfillment of Stellantis’ volume potential and achieve our Dare Forward 2030 ambition.”
Stellantis taps Amazon For Vehicle Technology
Qualcomm’s Snapdragon Digital Chassis technology will power in-car communications and infotainment systems for Stellantis vehicles. Stellantis is also working with Amazon (AMZN) and Apple (AAPL) manufacturing partner Foxconn on some aspects of its smart vehicle technology.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on five Buys and one Hold. The average Stellantis price forecast of $27.19 implies upside potential of 81.3% to current levels. Shares have declined 23% year-to-date.
TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Stellantis, with 16.2% of portfolios tracked by TipRanks increasing their exposure to STLA stock over the past 30 days.
Key Takeaway for Investors
The Qualcomm arrangement has the potential to help Stellantis deliver in-demand vehicles that could in turn boost the automaker’s sales in the long term. Stellantis aims to double its revenue as its focus turns to electric cars.
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