The California Based Company is the one of the world’s largest and highest valued semiconductor chip maker. Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP and Dell. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
Late on Monday, Intel (INTC) announced that it would be buying Movidius, a startup company that designs specialized low-power processor chips for computer vision. This news affected the stock price of Intel as a significant hike was observed early on Tuesday morning. Shares of Intel Corporation (INTC) rose by just under 1% in the early morning trading session on Tuesday.
“Movidius specializes in machines equipped with computer vision, which are capable of visually processing and understanding their surroundings”, Intel said in a statement. Computer vision enables navigation and mapping, collision and avoidance, tracking, inspection analytics, and other capabilities. Google and Lenovo are both clients of Movidius, and use its technology in drones, security cameras, virtual reality headsets and other devices.
Intel says that its particularly looking to integrate Movidius’ work into augmented, virtual, and merged reality systems as well as robotics and security systems. Intel has been shopping around for companies that contribute to this bottom line; just last month, the company acquired the deep-learning company Nervana Systems to help it compete in the AI sphere. Recent acquisitions show how Intel has broadened its focus away from x86, turning its attention to new technology like virtual reality devices, drones, and smart home products.
The CEO of Movidius, Remi El-Ouazzane said, “Today, I’m excited to announce the planned acquisition of Movidius by Intel. Movidius’ mission is to give the power of sight to machines. As part of Intel, we’ll remain focused on this mission, but with the technology and resources to innovate faster and execute at scale. We will continue to operate with the same eagerness to invent and the same customer-focus attitude that we’re known for, and we will retain Movidius talent and the start-up mentality that we have demonstrated over the years.”
He added, “Our leading VPU (Vision Processing Unit) platform for on-device vision processing combined with Intel’s industry leading depth sensing solution is a winning combination for autonomous machines that can see in 3D, understand their surroundings and navigate accordingly. Today, we’re working with customers like DJI, FLIR, Google and Lenovo to give sight to smart devices including drones, security cameras, AR/VR headsets and more. But today’s smart devices, while compelling, offer just a glimpse of what’s to come.”
The experts have commented on this situation and have advised the traders to “BUY” Intel’s stock has it is further expected to rise once the terms of the buy are released. The terms were not disclosed during the announcement on Monday and the details of the Intel-Movidius deal have not been disclosed yet, but the acquisition should be finalized by the end of this year.