10 Stocks That Will Change the World

4. Mobileye NV (NYSE:MBLY)

Number of Hedge Fund Holders In Q1 2024: 34

Mobileye NV (NYSE:MBLY) is an autonomous driving company that is an  Intel subsidiary. It makes and sells a variety of products for autonomous driving. These provide vehicles with the ability to detect roads in real time and provide drivers with navigation assistance. Mobileye NV (NYSE:MBLY) also enjoys a considerable competitive moat in the assisted driving industry through its SuperVision platform. This is one of the few products in the world that allows for assisted driving at speeds greater than 100 kilometers per hour. While its exclusive focus on assisted driving allows Mobileye NV (NYSE:MBLY) to excel in the industry, it also makes it vulnerable to industry headwinds – such as those generated by greater regulatory scrutiny or tighter regulations.

Mobileye NV (NYSE:MBLY)’s management is aware of its wide moat, as it commented during the Q2 2024 earnings call:

“Ultimately, Mobileye’s long-term growth outlook hinges on our prospects to lead the path of next generation ADAS and solve autonomy while offering a spectrum of product variants appealing to the broadest audience of car makers possible. As a final topic, I’ll highlight some important details of how the EyeQ6 platform represents a leap forward towards these goals and helps position us as the only company in the world that can support all four consumer vehicles categories and Robotaxis as well. As the global OEMs are emerging from a major replanning process, combustion engines versus EV, China versus non-China, buy versus build for autonomy, we are seeing increased clarity on future ADAS and AV segmentation around four distinct categories. Number one, emerging market ADAS as the future growth driver for the 25 million or so vehicles sold today that don’t have any ADAS.

These systems will require lower price for less functionality, yet with high performance, which is where we excel. Number two, developed market ADAS. Recent guidance on future regulations continue to push the envelope on performance, which is a significant positive for us. It’s a key factor in the success of EyeQ6 Lite, which has already been nominated for 50 million units of future business, is involved in many current RFQs and is in — and is progressing towards design wins across all major customers.”