Karma Automotive recently revealed that it will be participating in the Consumer Electronics Show (CES) 2025 with Intel Corporation INTC to demonstrate the power of their jointly developed Software Defined Vehicle Architecture (SDVA) solution. This solution aims to redefine the automotive industry by creating intelligent, efficient and sustainable vehicles. 

Earlier this year, both companies collaborated to develop SDVA, a significant departure from traditional vehicle architecture, which relies on multiple Electric Control Units (ECUs). By integrating various vehicle functions within Intel’s centralized and zonal compute systems, SDVA is expected to offer greater flexibility, lower costs, enhanced performance and improved energy efficiency. For instance, in electric vehicles, SDVA will likely optimize battery usage by offloading tasks such as external camera monitoring to zonal controllers, thereby reducing unnecessary battery drain and streamlining vehicle design by cutting down the required numbers of ECUs. 

Leveraging Intel's expertise in computing and software technology, the California-based luxury automaker is harnessing the full potential of SDVA to develop innovative and intelligent automobiles, including the Karma Kaveya super coupe, set to debut in 2026. The car is projected to offer up to 1,000 horsepower, optional all-wheel drive and a remarkable 0-60 mph acceleration in under three seconds, with a starting price of around $300,000. Positioned as a pioneer in its class, Kaveya will be the world's first vehicle to develop from the ground up with a true SDVA, setting new benchmarks in performance, efficiency, and luxury.

INTC’s Solution to be Presented at CES 2025

At CES, Karma will feature an Intel co-branded inverter, a critical device that converts direct current from the vehicle's batteries into alternating current and features Optimal Pulse Pattern programming to manage the vehicle's EMotors for improved efficiency. 

A simulated dyno test at the event will highlight the performance benefits of this technology, showcasing four driving profiles: Highway, City, Park, and Charge. Each profile will demonstrate key metrics such as wheel torque, wheel speed, power and efficiency, optimized through Torque Ripple Reduction and Range Boost parameters. The results will highlight the significant energy savings and range improvements achievable through these innovative processes.

Further, detailed renderings of the Karma Kaveya's powertrain will be displayed, illustrating the strategic placement of E-motors, inverters, batteries, wiring, zonal controllers and high-performance computers that enable the seamless operation of SDVA technology.

Does INTC Stock Stand to Gain From the Demonstration?

The CES 2025 demonstration highlights Intel's pivotal role in advancing the automotive industry through its collaboration with Karma Automotive. By showcasing its SDVA technology in the Karma Kaveya, Intel demonstrates how its innovations can enhance vehicle performance, efficiency and connectivity. 

This partnership not only strengthens Intel's position in the electric vehicle market but also sets the stage for an open, transformative ecosystem that will generate significant revenues for Intel in the upcoming quarters. An improved financial performance will likely propel the stock upward.

INTC’s Stock Price Performance

Shares of Intel have plunged 57.9% over the past year against the industry’s growth of 123.4%.

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INTC’s Zacks Rank and Key Picks

Intel currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. UI sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
 
InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%.

IDCC pioneered advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops various advanced technology solutions for digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 14.8%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

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