On Tuesday, Ferrari said it would partner with Qualcomm Technologies (NASDAQ:QCOM) to use the San-Diego-based group's premium product, the Snapdragon chipsets, to accelerate the sports carmaker's digital transformation.
The companies will explore opportunities that will aid Ferrari's tech shift, including the so-called digital cockpit, with the partnership extending to Ferrari's esports activities.
Newly appointed CEO Benedetto Vigna at Ferrari said in November Ferrari would seek technology collaborations as it moves ahead with the transition toward cleaner mobility and pivot technologies that require high investments.
Ferrari will use Qualcomm's Snapdragon Digital Chassis, a suite of automotive technologies that comprise telematics and ADAS (advanced driver assistance systems) functions to deliver immersive digital experiences and enhanced safety.
"Innovation requires market leaders working together. Thanks to this agreement, we expand our knowledge in digital technologies and web 3.0, areas with great potential for automotive and motorsport", he said.
Turning to the semiconductor shortage that is poised to continue weighing on automotive production this year, developing closer ties with Qualcomm may come in handy for Ferrari.
In addition to providing the technologies to power Ferrari's supercars, Qualcomm has also secured a sponsorship deal with the sports car manufacturer and joined a premium partner of Ferrari's racing division, the Scuderia Ferrari F1 team.
Qualcomm's Snapdragon logo will make its debut on 17 February on the Ferrari single-seater F1-75 racing model, which will be revealed at the company's headquarters in Maranello.
ANALYSTS' RECOMMENDATION
Qualcomm is currently among the highest yielding stocks in its sector, with a dividend yield of 1.51% compared to the sector average of 0.69%.
Consensus among analysts is a Moderate Buy based on 14 Buys and 7 Holds. The average Qualcomm price target of $215.40 implies a potential upside of 20.61% to current levels.
On Tuesday, Qualcomm stock rose 2% to $178.59.
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