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Maxim's (MXIM) Solutions to Enhance MediaTek's IVI Platform

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Maxim Integrated Products, Inc. recently announced that a few of its automotive video distribution and power management products will be used in MediaTek’s AUTUS in-vehicle infotainment (IVI) platform.

The Autus suite is a powerful in-vehicle infotainment system (IVI) that provides information for auto sensors, entertainment content, navigation and more. MediaTek’s AUTUS infotainment solutions enhance passengers’ safety, connectivity and entertainment by delivering information and content from the car’s sensors and multimedia sources.

Maxim's gigabit multimedia serial link (GMSL) serializer and deserializer (SerDes) technology supports the important requirements (high data rate, complex interconnect, data integrity and safety) for the future of automotive infotainment, ADAS, and autonomous driving.

This advanced GMSL SerDes technology allows video transmission from a distance of 12m to 15m and provides surround-view application support, fulfilling the important requirements needed by MediaTek’s IVI platform.

Maxim's power management solutions will improve multimedia performance and efficiency for MediaTek's platform. Also, Maxim's varied linear regulators will deliver power rail performance required by different MediaTek design platforms.

The latest move is likely to aid its position in the automotive market, which in turn will accelerate revenues from this market.         

Maxim Integrated Products, Inc. Price and Consensus

 

Bottom Line

Maxim’s automotive business has been growing lately. Notably, the automotive segment generated 25% of its total revenues during third-quarter fiscal 2019. Further, revenues were up 5% on a year-over-year basis.

The company is witnessing increasing customer wins in this segment, which is a positive. Maxim collaborated with Qualcomm Incorporated in July to focus on safety and other important requirements for autonomous vehicles.

The company’s expertise in Automotive Safety Integrity Levels (ASIL) remains a key catalyst. Moreover, the ASIL compliant battery management system remains a market differentiator and will help it sustain its momentum in the market.

We believe Maxim’s continued innovation will enable it to provide better services to customers and in turn improve profitability.

The company is expected to announce fourth-quarter fiscal 2019 results on Jul 30, 2019, after market close.

Zacks Rank

Maxim currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Match Group, Inc. (MTCH - Free Report) , LivePerson, Inc. (LPSN - Free Report) and Dropbox, Inc. (DBX - Free Report) . While Match Group sports a Zacks Rank #1 (Strong Buy), both LivePerson and Dropbox carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Match Group, LivePerson and Dropbox is currently projected at 15.2%, 25% and 14.2%, respectively.

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