Intel Invests in Autonomous Driving; Artificial Intelligence
Intel Corp. (NASDAQ: INTC – $37.26) announced a collaboration with Alphabet’s Waymo self-driving unit, saying it had worked with the company during the design of its computer platform to allow autonomous cars to process information in real-time. The world’s largest computer chipmaker said its Intel-based technologies for sensor processing, general compute and connectivity were used in the Chrysler Pacifica hybrid minivans Waymo has used since 2015 to test its self-driving system. Intel, which announced the $15 billion acquisition of autonomous vision company Mobileye in March, is pushing to expand in self-driving vehicles, a fast-growing industry, across a variety of business models. A collaboration with Waymo, considered by many industry experts to be at the forefront of autonomous technology, adds to its portfolio.
The company also said that to drive artificial intelligence (AI) innovation, it has invested in startups like Mighty AI, Data Robot and Lumiata through its Intel Capital portfolio. Intel has committed more than $1 billion in companies that are helping to advance AI spanning technology, research and development and partnerships with business, government, academia and community groups. Intel believes such investments will drive innovation which will advance research on cancer, Parkinson’s disease and brain disorders; helping to find missing children; and furthering scientific efforts in climate change, space exploration and oceanic research.
Shares of INTC remain a solid choice for conservative income investors willing to participate in the semiconductor industry. Intel’s size, diversified portfolio, wide global footprint and strong leadership give it an advantage on the competition. A solid dividend yield of nearly 3% provides for above-average total return potential and increases to the payout are highly likely and well covered by strong cash flow.