Stock Analysis & Valuation Mobileye Global Inc. (MBLY)

• Previous Close: $8.97
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	24.17	169
Intrinsic value (DCF)	6.24	-30
Graham-Dodd Method		n/a
Graham Formula	43.48	385

Strategic Investment Analysis

Company Overview

Mobileye Global Inc. (NASDAQ: MBLY) is a global leader in advanced driver assistance systems (ADAS) and autonomous driving technologies. Founded in 1999 and headquartered in Jerusalem, Israel, Mobileye develops cutting-edge solutions that enhance vehicle safety and enable autonomous driving. The company’s product portfolio includes Driver Assist, Cloud-Enhanced Driver Assist, Mobileye SuperVision, Mobileye Chauffeur, and Mobileye Drive—a Level 4 autonomous driving solution. Mobileye’s technologies leverage real-time detection, AI-powered scene interpretation, and cloud-based enhancements to improve road safety and navigation. As a subsidiary of Intel, Mobileye benefits from strong R&D capabilities and strategic partnerships in the automotive and tech industries. Operating in the fast-growing Auto - Parts sector, Mobileye is well-positioned to capitalize on the increasing demand for ADAS and autonomous vehicle solutions worldwide.

Investment Summary

Mobileye presents a compelling investment opportunity due to its leadership in ADAS and autonomous driving technologies, backed by Intel’s resources. However, the company faces risks, including high R&D costs, regulatory hurdles in autonomous driving adoption, and competition from established automotive suppliers and tech firms. Despite reporting a net loss of $3.09 billion in its latest fiscal year, Mobileye maintains a strong cash position ($1.43 billion) and zero debt, providing financial flexibility. The company’s low beta (0.365) suggests lower volatility relative to the market, appealing to risk-averse investors. Long-term growth potential hinges on widespread adoption of autonomous vehicles, but near-term profitability challenges may deter some investors.

Competitive Analysis

Mobileye’s competitive advantage lies in its proprietary AI-driven vision-based ADAS and autonomous driving technologies, which are widely adopted by major automakers. The company benefits from Intel’s semiconductor expertise, enabling seamless integration of hardware and software solutions. Mobileye’s Road Experience Management (REM) system, which crowdsources mapping data, provides a unique edge in real-time navigation accuracy. However, competition is intensifying as traditional automotive suppliers (e.g., Bosch, Continental) and tech giants (e.g., NVIDIA, Waymo) expand their autonomous driving portfolios. Mobileye’s asset-light model, focusing on software and chip design rather than manufacturing, allows for scalability but also exposes it to supply chain dependencies. While its Level 4 autonomous solutions (Mobileye Drive) position it as a pioneer, commercialization timelines remain uncertain. The company’s partnerships with OEMs (e.g., Volkswagen, Ford) strengthen its market position, but pricing pressure and commoditization risks in ADAS could erode margins over time.

Major Competitors

• NVIDIA Corporation (NVDA): NVIDIA dominates the AI and GPU markets, with its DRIVE platform competing directly with Mobileye in autonomous driving. Strengths include superior AI processing power and strong partnerships with automakers. Weaknesses include higher hardware costs and less specialization in vision-based ADAS compared to Mobileye.
• Intel Corporation (INTC): Intel, Mobileye’s parent company, provides synergies in chip manufacturing and AI development. However, Intel’s broader focus on semiconductors dilutes its autonomous driving specialization compared to Mobileye’s dedicated ADAS solutions.
• Alphabet Inc. (Waymo) (GOOGL): Waymo, Alphabet’s autonomous driving unit, leads in Level 4/5 autonomous technology but focuses primarily on robotaxis rather than consumer vehicles. Strengths include vast AI resources and real-world testing data. Weaknesses include limited OEM partnerships compared to Mobileye.
• Tesla Inc. (TSLA): Tesla’s in-house Full Self-Driving (FSD) system competes with Mobileye’s offerings. Strengths include vertical integration and a large fleet for data collection. Weaknesses include regulatory scrutiny and reliance on camera-only vision, whereas Mobileye uses a multi-sensor approach.
• Robert Bosch GmbH (BOSCH): Bosch is a leading automotive supplier with strong ADAS and autonomous driving solutions. Strengths include manufacturing scale and OEM relationships. Weaknesses include slower innovation cycles compared to Mobileye’s agile software-centric model.
• Continental AG (CTTAY): Continental offers integrated ADAS and autonomous driving systems, competing with Mobileye in radar and vision-based solutions. Strengths include global manufacturing presence. Weaknesses include higher dependency on traditional automotive cycles.