Veoneer's shares jumped 19 per cent yesterday after it unveiled a partnership with U.S tech giant Qualcomm in advanced driver assistance systems said a report by news18. Veoneer will integrate Qualcomm's Snapdragon Ride platform in its technology. Veoneer is a Swedish company whose shares were up 8.5 per cent today with several equity analysts predicting the collaboration was a vote of confidence and would enhance the company's position compared to their rivals such as Mobileye.
The open and programmable platform that both companies intend to develop will be designed to create alternatives for automakers. It will also create tier-1 suppliers for more customization opportunities while also charting a course for next-generation automotive architecture evolution. The companies expect the integrated platform to be available through automotive tier-1 suppliers or directly to OEMs for 2024 vehicle production.
"We believe this collaboration has increased Veoneer's chances of being one of the major players in this market," Handelsbanken Capital Markets said in a research note.
The next-generation software stack will be developed in a dedicated organization within Veoneer.
Handelsbanken, who has repeatedly recommended the Veoneer stock, said the joint product could be the best competitor compared to the market-leading EyeQ SoC system from Intel-owned Mobileye.
Jefferies analysts said the partnership would likely broaden Veoneer's target market and ultimately strengthen its positioning versus Mobileye although the collaboration would take time to bear fruit.
Veoneer, which used to be in the airbag making business formerly known as Autoliv in 2018, remains a loss-making venture and has been hit really bad by the pandemic.
Despite the recent gains, its shares are down by 17 per cent in the year to date.