We came across a bullish thesis on Mobileye Global Inc. on Sensus Capital Research’s Substack. In this article, we will summarize the bulls’ thesis on MBLY. Mobileye Global Inc.’s share was trading at $8.70 as of February 23rd. MBLY’s forward P/E was 35.97 according to Yahoo Finance.
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Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions in the United States and internationally. MBLY continues to be a structurally compelling story due to its locked-in $24.5 billion revenue pipeline for advanced ADAS and autonomous solutions, with material conversion expected from 2027 onwards. The recent headlines—the $900 million Mentee Robotics acquisition and a 9 million-unit “Surround” ADAS win with a major U.S. OEM—have added complexity to the near-term outlook.
The OEM deal validates Mobileye’s strategy to expand beyond front-camera safety into full-surround, multi-sensor systems, integrating up to 11 sensors processed by a single EyeQ6H chip, simplifying vehicle architecture and lowering system costs. While this nearly doubles Mobileye’s high-end pipeline to 19 million units, the revenue impact is back-loaded, with series production targeted for H1 2028, leaving short-term equity catalysts limited. ASP expansion is meaningful, with Surround systems priced at $150–$200 versus $40–$50 for basic ADAS chips, supporting long-term revenue growth.
The Mentee Robotics acquisition marks Mobileye’s entry into the Physical AI market, leveraging humanoid robots to expand its perception and decision-making algorithms beyond automotive. Mentee’s vertically integrated hardware and simulation-driven learning model create technical synergy, but commercialization risks are high, as sales, service, and operational infrastructure for industrial and domestic clients are largely untested. Revenue from this initiative is not expected until 2028, with meaningful contribution to Mobileye’s top line likely in 2030+, making this a long-term strategic bet rather than an immediate value driver.
Competitive pressures from NVIDIA’s Alpamayo and execution risks underscore the cautious outlook. Despite the “Mobileye 3.0” rebrand, the core thesis remains: Mobileye’s robust pipeline and technological moat justify a long-term view, with equity exposure best managed conservatively until production milestones and pipeline conversions are realized, supporting the case for structured strategies like long-term Cash Secured Puts (CSPs).
Previously, we covered a bullish thesis on Innoviz Technologies Ltd. (NASDAQ:INVZ) by Danny Brody in January 2025, which highlighted the company’s turnaround potential, improving financials, and innovative LiDAR technology for autonomous vehicles. INVZ’s stock price has depreciated by approximately 49% since our coverage. Sensus Capital Research shares a similar view but emphasizes Mobileye Global Inc.’s (MBLY) $24.5 billion ADAS pipeline and Mentee Robotics acquisition, highlighting back-loaded revenue and long-term technology expansion.
Mobileye Global Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held MBLY at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of MBLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MBLY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
