Terms of the purchase, which was announced late Monday, were not disclosed.
A deal with the San Mateo, CA-based company would boost Intel's artificial intelligence portfolio as it looks to become a bigger player in that arena, the Wall Street Journal reports.
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.
Alphabet's (GOOGL) Google and Lenovo Group (LNVGY) are both clients of Movidius, and use its technology in drones, security cameras, virtual reality headsets and other devices, the Journal added.
Intel said it will use Movidius' System on a chip platform to add to its existing computer vision technologies.
While Intel's revenue is still largely driven by PC chips, the company has recently been trying to shift its focus away from the declining PC industry, according to the Journal.
Additionally, Evercore ISI upgraded Intel's stock rating to "buy" from "hold" this morning, citing the company's accelerating data center segment amid slowness in its PC business.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Intel as a Buy with a ratings score of B+. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.You can view the full analysis from the report here: INTC