CEVA may pose a challenge to Intel-Mobileye

26 March, 2017

Wunderlich: "Over the long term, We expect CEVA to be part of the competitive environment for Intel/Mobileye in autonomous vehicles"

CEVA’s Neural Networks framework

The Intel-Mobileye $15 billion deal that gives Intel a premium position in the future Automomous Vehicles, sent investors to look for interesting opprtunities in this emerging market.  A new report by Wunderlich Securities pointing CEVA from Herzlya, Israel, as a growing competitor in this vsegment.

CEVA is a leading licensor of digital signal processor (DSP) technology. The Wunderlich analyst,  Matthew Robison, gave CEVA a price target of  $40 for CEVA’s shares, now traded in NASDAQ for $34.30.

Robison explained that in uniquely offering a licensable vision processor along with a neural network framework for artificial intelligence applications, “CEVA is providing for those wishing to develop their own capabilities to augment or compete with Mobileye. Meanwhile, CEVA is adding licensees for driver assistance and imaging functions.”

Investments in imaging and ADAS

He mentioned that the company has made heavy investments in imaging, machine vision and Advanced Driver Assistance Systems (ADAS). “The company’s latest vision digital signal processor, the XM6, which was announced in September, is to be licensing in 1Q17. In the near and medium-term we expect royalties from machine vision imaging applications to come from more sophisticated smart phone cameras, followed by surveillance applications and ADAS, including 360-degree object detection.

“With Intel purchasing Mobileye, arguably the purest publicly traded asset in ADAS and autonomous vehicle technology is spoken for. Of the 20 CEVA licensees for imaging and vision, Altek, Novatek, On Semiconductor and Rockchip exemplify licensees targeting automotive/ADAS, as well as at least one undisclosed tier-1 subsystem supplier. Expect several of these to become part of 2017 royalties.”

CEVA does not provide full ADAS application software solutions for forward collision or lane departure warning. These capabilities are offered by Mobileye (MBLE-NR), tier-1 subsystem roviders, like AutoLiv (ALV-NR), Bosch (500530-BOM-NR), Continental (CON-ETR-NR) and Denso (6902-TKS-NR), as well as by Tesla (TSLA-NR). CEVA uniquely provides licensable vision processors cores with complete tools to implement algorithms, utilize industry frameworks and use of artificial intelligence (AI) for fully autonomous vehicle operation.

“We expect CEVA to be part of the competitive environment for Intel/Mobileye in autonomous vehicles over the long term.”

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