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Analog Devices and Baidu Collaborate on New Technologies

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Analog Devices Inc. (ADI - Free Report) recently collaborated with Baidu, Inc. (BIDU - Free Report) to advance the development of autonomous driving technologies.

Both the companies aim to develop new technologies for sensing and navigation applications such as radar and lidar for Project Apollo. The deal will provide innovative and reliable solutions to address the needs of autonomous driving and intelligent connectivity, taking full care of the safety system.

Baidu’s Apollo platform focuses on utilizing the Chinese tech heavyweight’s strengths in artificial intelligence to build a collaborative driverless car ecosystem.

Notably, the stock has outperformed the industry in the past 12 months. It has gained 19.7% compared with the industry’s growth of 15.4%.

Outlook

Undoubtedly, more innovation will take place in the autonomous driving space over the next few years, both by technology companies and automakers, including smaller startups. According to Research & Markets data, the global software market for autonomous cars is anticipated to grow at a CAGR of 76.1% between 2017 and 2021. This is one of the best places to be in because here technology is being developed. Also, early investors can sell their interest at a hefty premium.

Analog Devices is witnessing steady improvement in certain fast-growing segments of the automotive market, which is expected to see a CAGR of 5.8% between 2016 and 2022, according to a marketsandmarkets.com report.

Analog Devices focuses on infotainment, safety and ADAS, body electronics (including lighting), hybrid electric vehicles, and powertrain segments of the automotive market. The company has made significant progress on RADAR, LIDAR, Inertial Measurement Units (IMU) and digital signal processing (DSP) products to expand its share in the autonomous driving space.

This partnership underscores Analog Devices’ growing interest in this highly promising space. It appears that the company is flexing its muscles in this space to leverage the concept of consumer convenience, and fun in a bid to impress both customers and investors.

Analog Devices, Inc. Price and Consensus

 

Analog Devices, Inc. Price and Consensus | Analog Devices, Inc. Quote

Zacks Rank and Stocks to Consider

Currently, Analog Devices carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same industry include Groupon (GRPN - Free Report) , IAC/InterActiveCorp (IAC - Free Report) and Ctrip.com International, Ltd. While Groupon and IAC/InterActiveCorp sport a Zacks Rank #1 (Strong Buy), Ctrip.com holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Groupon, IAC/InterActiveCorp and Ctrip.com is currently projected to be 6.5%, 7.5% and 16%, respectively.

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