Mobileye Global (MBLY): A Beaten-Down Autonomous Driving Stock With Significant Upside Potential
Mobileye Global (MBLY) has spent 25 years developing technology that makes vehicles safer and more capable of driving themselves. Its systems are already installed in hundreds of millions of cars worldwide, and the company is preparing to introduce more advanced products as automakers expand their use of automated driving technology.
Yet shares have fallen 29% this year, compared with a 13% gain for the S&P 500. We think that pullback presents an interesting opportunity for long-term investors.
Mobileye specializes in advanced driver assistance systems (ADAS), including technology that supports steering assistance, adaptive cruise control and increasingly sophisticated autonomous driving capabilities.
Its EyeQ system-on-chip technology has been installed in more than 230 million vehicles across approximately 1,400 models worldwide. That established presence gives Mobileye a strong foundation as automakers continue adding advanced safety features to their vehicles.
One of the biggest opportunities is the growing adoption of lidar, 360-degree vision and other technologies that allow vehicles to better understand their surroundings.
As these systems become more sophisticated, automakers need more capable hardware and software to support them. Mobileye is positioned to benefit by supplying higher-value technology to existing customers and expanding into additional vehicle models.
An important catalyst is already on the horizon.
