Xilinx MPSoC Powers Baidu's Smart Valet Parking Platform

Xilinx, Inc. (NASDAQ:XLNX) recently announced that its Automotive Zynq UltraScale+ MPSoC is enabling Baidu’s BIDU Apollo Computing Unit (ACU)-Advanced platform for Automated Valet Parking (AVP).

The ACU-Advanced is designed specifically to cater to the requirement of sophisticated and powerful deep learning inference. The automotive Zynq UltraScale+ MPSoC will provide sensor fusion and AI processing, replacing the GPU used in its pilot phase.

With the collaboration, the companies aim to provide adaptable computing platform to automotive OEMs and Tier 1 suppliers.

Per a study by Fact.MR, smart valet parking solutions have witnessed year-over-year growth of 9.9% in 2018.

Per Allied Market Research, Smart Parking market is projected to reach $11.55 billion by 2025 at a CAGR of 11.2% from 2018 to 2025.

These make us optimistic about the prospects of the company in this space.

Growing demand for Xilinx’s 16-nanometer UltraScale+ family has been the key driver. The company is also benefiting from strong demand for its Zynq platform, boosted by the adoption of MPSoC family in wireless and across core vertical markets.

Further, foray into the AVP market is likely to bode well for Xilinx, especially because it is still a relatively untapped area. The closest contender to the company in this space is Ambarella (NASDAQ:AMBA) .

In April this year, Ambarella announced collaboration with Chinese automotive supplier Shanghai OFilm to develop an AVP hardware platform, based on Ambarella's CV22AQ CVflow computer vision SoC.

The amalgamation of Ambarella’s SoC and OFilm’s intelligent driving algorithms and system integration capability will help the platform achieve high precision image recognition, free space detection, obstacle detection and map construction.

The joint venture followed a collaboration by Daimler’s Mercedez-Benz and Bosch, which developed an AVP system in 2017, making them the first companies to come up with the system.

Having less number of companies competing in the same area is likely to enable Xilinx to cash in the opportunity.

Zacks Rank and A Key Pick

Xilinx currently has a Zacks Rank #4 (Sell).

A better-ranked stock in the broader technology sector is Fortinet, Inc. (NASDAQ:FTNT) , flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Fortinet is currently pegged at 14%.

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