Apple Supplier NXP May Beat Tesla Partner Nvidia To Autonomous Car
Apple ( AAPL ) chip supplier NXP Semiconductors ( NXPI ) batted the iPhone slowdown Monday by unveiling a radar, lidar and vision-sending engine that could beat Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) to the autonomous-car punch. The product platform was revealed during NXP’s annual user forum in Austin, Texas, and comes as Nvidia stock has hit record highs the past two trading days on Wall Street after reporting eye-popping Q1 earnings after the close Thursday. Nvidia touted its machine-learning sales for the Q1 beat. Machine-learning, analysts and companies say, will be essential to creating safe, fully autonomous vehicles. NXP’s BlueBox engine incorporates “embedded intelligence and machine-learning required for complete situation assessments,” the company says. On the stock market today , NXP stock rose 2.3%, following its BlueBox announcement, to 84.97, putting it up a fraction for the year. Shares had hit a 19-month low during the February dip that hurt most Apple suppliers. Apple’s iPhone shipment decline has chip investors worried about the next semiconductor frontier, as smartphone sales hit the brakes. But NXP CEO Rick Clemmer recently told IBD that 40% of his company’s revenue stem from automotive sales. For its Q1 ended April 3, 21% of NXP’s sales stemmed from its smartphone segment. The BlueBox engine uses NXP silicon and software at each advanced driver assistance system (ADAS) node and incorporates radar, lidar and vision-sensing to complete a 360-degree world model around the vehicle. “This functionality greatly improves car safety by both managing and preventing emergency situations,” NXP says. And “unlike closed systems focused only on vision and other single-sensor data streams, the NXP BlueBox engine for autonomous vehicle is an open-source platform.” Programmers can customize BlueBox to their specifications, NXP says. The product already is in hands of customers of four of the world’s top five carmakers, NXP says. It has been shipping since September but now is broadly available.