Should I Buy Mobileye (MBLY)? Finance YouTuber Analysis

The YouTuber recommends Mobileye as the purest way to invest in automotive edge vision, with its IQ chip acting as the 'eyes and reflexes' of cars. With over 230 million vehicles equipped, Mobileye has a massive installed base. Revenue is climbing again after a one-time write-down, and the company is expanding into robotaxi fleets.

“All right, the next company is Mobileye, the purest way there is to own automotive edge vision, because while everyone bolts AI onto the dashboard, Mobileye builds the IQ chip that is the eyes and reflexes of the car, running every camera frame inside the car itself.”

The YouTuber recommends Mobileye, citing its core business in advanced driver assistance systems (ADAS) and its recent acquisition of Menty Robotics, which builds humanoid robots. He believes Mobileye's proven Edge AI technology in vehicles can be successfully applied to the rapidly growing robotics market, while its core ADAS business is also recovering with 15% revenue growth last year.

“They've already proven that this technology and AI works in millions of vehicles. And now they're applying it to robotics markets that's growing at over 40% a year.”

The YouTuber recommends Mobileye Global, noting its provision of cameras, chips, mapping, and AV software for level four autonomy. While currently focused on passenger vehicles, he believes its advanced technology and existing relationships with major automakers will allow it to quickly transition and succeed in the autonomous trucking industry.

“This provides the cameras, the chips, mapping that AV software for level four autonomy. Now, it's already has a relationship with Cadillac, BMW, Nissan, and Tesla.”

The analyst believes Mobileye is a strong long-term buy despite recent stock performance, citing its role as a modular supplier in autonomous driving, significant backlog of $24.5 billion by end of 2025, and an attractive valuation with a $4.2 billion enterprise value after cash. He expects revenue per vehicle to increase significantly as more integrated solutions are adopted.

“I think the business model is right. And as we have more Robo taxis hitting the road with the next few years, we're going to see companies like Mobileye take more market share.”

Travis Hoium argues that Mobileye is an overlooked leader in the robo-taxi and autonomous driving market, poised for significant revenue growth by the end of the decade as it transitions to higher-priced, more advanced systems. He highlights its strong balance sheet with no debt, current market share, and partnerships with major OEMs like Volkswagen, suggesting it's a value play with an impending inflection point in revenue and expanding margins.

“What we're seeing with Mobile Eye is they're maintaining their market share with their their existing products as they move into these higherend products.”

Hoium identifies Mobileye as a contrarian buy, despite its recent stock decline, due to its leadership in autonomous vehicle technology. He emphasizes its horizontal business model, selling technology to multiple OEMs, and recent partnerships that will contribute millions of units starting in 2027. The current low enterprise value ($3.8 billion) and improving free cash flow, even before the full inflection point of autonomous vehicles, suggest a high upside potential with relatively low downside.

“Again, this is an asymmetric investment. What is the downside? Relatively low given the current market cap. What is the upside? Extremely high, especially if you have millions of vehicles being produced every year with level three, level four, even level five autonomy coming from Mobile Eye.”

The YouTuber is invested in Mobileye, considering it a high-conviction idea due to its clear path from current ADAS technology to full Level 4 autonomy. He cites Mobileye's partnerships with Volkswagen and a new US manufacturer (likely GM), and its modular approach to providing autonomous vehicle technology, positioning it as a key player in the technology layer of the autonomy market.

“I'm invested in Mobilei. I think that's the one company that has a natural path from base ADAS which is in vehicles today to the full level four autonomy that we're going to have in the future.”

The analyst recommends Mobileye as a key supplier of autonomous vehicle technology. He believes Mobileye's business model, providing chips, sensors, and software to numerous automakers, positions it to profit from the broader adoption of autonomous driving without the complexities of manufacturing or ride-sharing aggregation.

“The other business I'm looking at I mentioned earlier is Mobilei. Mobile is providing the technology. That technology isn't just going to go into those Moya vehicles or into those Volkswagen vehicles. That's going to be able to be sold to dozens of automakers all around the world.”

The analyst owns shares of Mobileye because he believes not every automaker will develop their own autonomous vehicle technology. Mobileye is positioned as a modular, specialized company providing AV tech to multiple automakers, making it a valuable piece of the value chain.

“That's why I own shares of Mobileye. I think that's going to be a valuable piece of the value chain.”

The analyst believes Mobileye is a strong buy due to its recent partnership with Volkswagen, the world's largest automaker, to integrate its Surround ADAS system. This deal is expected to significantly increase Mobileye's revenue per vehicle and overall volume, leveraging its horizontal services business model. He anticipates 2025 to be a transformational year, with substantial revenue, earnings, and free cash flow growth by 2027-2028 as more advanced systems are adopted.

“I think this is probably a bigger deal than a lot of investors realize Volkswagen is the biggest automaker in the world mobile ey has a horizontal Services business model that means that they want to develop their technology the chips the sensors and the software one time and then sell it to all kinds of automakers all around the world you get volume when you get to Volkswagen”

The YouTuber is invested in Mobileye and views it as a key player in the autonomous driving space, offering a more specialized and potentially cost-effective modular solution compared to Nvidia's generalizable approach. He highlights Mobileye's current product offerings and pricing structure as a competitive advantage, especially as the industry moves towards cost-conscious full autonomy.

“Mobileye is another company in the autonomy space so where does everybody fit in this I'm going to try to dig through that and what we know to today”

The analyst owns Mobileye and sees it as a key technology provider for OEMs who will rely on third parties for self-driving technology rather than developing it in-house. This positions Mobileye to benefit from the broader adoption of autonomous vehicles, making their vehicles 'Lyft ready'.

“Mobileye is another stock that I own I think they're really going to be a technology provider for a lot of these big oems who aren't going to develop this technology in house.”

The YouTuber sees Mobileye as a key horizontal services provider in autonomous driving, offering solutions to automakers from basic ADAS to full Level 4 autonomy. While its growth hasn't fully materialized on the income statement yet, new partnerships like Volkswagen and Lyft are expected to drive significant demand and revenue growth later in the decade, transitioning from per-vehicle fees to potentially thousands of dollars per vehicle.

“This is really the horizontal services provider in autonomous driving so they're not going to make Vehicles they're not even going to sell a lot of hardware.”

The YouTuber recommends Mobileye as a better alternative to EV manufacturers, citing its role in providing autonomous driving technology to numerous automakers like Volkswagen, Porsche, and Audi. He believes Mobileye is an industry leader in licensing its technology, already present in hundreds of vehicles, and offers a more attractive investment at a lower price point compared to EV companies struggling with profitability.

“Mobile is providing the technology for autonomous driving for a lot of the companies that are not in the EV space so Volkswagen Porsche Audi they are a technology partner.”

The analyst identifies Mobileye as a strong investment opportunity within the autonomous driving sector. He highlights Mobileye's role in providing technology, chips, and imaging sensors to automakers globally, expecting their advanced autonomous hardware and software to be integrated into millions of vehicles. He anticipates that the market will begin to recognize Mobileye's growth potential as vehicles with their technology, particularly from Volkswagen, hit the roads in 2025 and beyond, with these systems being significantly more valuable than their current ADAS products.

“Mobileye is a company providing technology chips Imaging sensors for automakers all around the world they could potentially Supply autonomous hardware and software to millions of vehicles before the end of the decade and this isn't going to be a $100 product like their current ads system this is going to be thousands of dollarss per vehicle”

The YouTuber is investing in Mobileye, believing it will be a winner in a future where autonomous driving systems become modular and integrated across many different vehicle manufacturers. He sees Mobileye as well-positioned to provide the underlying technology for numerous autonomous vehicles.

“a company like mobile ey is going to be one of the winners in the market this is a company that I've been investing in since last summer and I think it is ultimately going to be one of the winners”

The analyst identifies Mobileye as a company to watch, as it provides technology to other automakers for level four or five autonomous driving features. He anticipates that this technology will become an expensive add-on in vehicles, potentially allowing cars from various manufacturers to integrate with ride-sharing platforms like Lyft or Uber.

“The other company to keep an eye on is mobile ey mobile ey is a company that's providing technology to other automakers so there's going to be a time where you're just going to be able to buy a vehicle that has level four or level five autonomous driving features that's going to be an expensive add-on but that technology is likely going to come from a company like mobile eye”

The YouTuber is bullish on Mobileye, a horizontal service provider for autonomous driving technology, despite recent inventory and sales issues in China. The company has a lead in autonomous driving systems and chips, with more advanced, higher-priced systems expected to hit the market soon. This should lead to significant revenue growth as it sells more components to automakers seeking Tesla-like solutions.

“I think this could be one of the leading companies on autonomous driving that could make it possible for dozens of automakers to have fully autonomous vehicles in the future.”

Mobileye builds technology for current vehicle features like lane assist and cruise control, and is developing technology for next-generation Level 4 and Level 5 autonomy. If fully autonomous vehicles become widespread in 5-10 years, Mobileye could be the underlying technology provider for many companies.

“if those Vehicles start coming out and this wouldn't be for another probably 5 to 10 years they could be the technology company behind all of these other companies building fully autonomous vehicles”

The YouTuber identifies Mobileye as a key technology provider for autonomous driving, developing the IQ6 chip and self-driving tech for various vehicle concepts. He suggests that if Mobileye's level four or five autonomy technology proves viable and scalable, it could be adopted by multiple automakers, enabling them to build robotaxi fleets.

“Mobileye is going to be the technology company behind this. They're going to make the IQ6 chip, all the self-driving technology behind it.”

The YouTuber suggests Mobileye as a company to watch, noting its role as a horizontal technology provider selling autonomous driving systems to other automakers. While acknowledging it's a more unknown player, he believes Mobileye is likely to be one of the winners in the autonomous driving market if Uber's CEO is correct about multiple operators.

“Mobileye a little bit of a more unknown player because we don't know who's going to be doing a level four or a level five system with them but if there are going to be 10 12 operators from Uber it's likely that a company like mobile ey and a couple company like uber are going to be two of the winners in the autonomous driving Market space.”

The YouTuber recently bought Mobileye for his portfolio, viewing it as a long-term investment despite recent weak earnings and guidance due to a slowdown in the Chinese EV market. He believes the company's long-term prospects are strong, citing a growing backlog, increasing interest from major OEMs in higher-end ADAS systems, and potential major design wins in 2024-2025 that could significantly boost future revenue and average sale prices.

“This is a stock that I recently bought for the first time it's in the asymmetric portfolio and it's one that I may add in the future ahead of potentially getting these design wins because that's really when the stock is going to take off is when it's a little bit more clear what the revenue future for the company is but I don't think things are as bad as the market thought they were from the second quarter of 2024 2025 2026 still looks pretty strong.”

The YouTuber recommends Mobileye as a strong play in autonomous driving due to its horizontal business model, providing technology to other automakers like Volkswagen and Chinese brands. He anticipates Mobileye's technology could be deployed in millions of vehicles, offering significant upside as a key enabler in the industry.

“The upside is buying Mobileye and that becoming the go-to technology for Volkswagen and all of its brands for a number of Chinese Brands like gilee.”

The analyst is interested in Mobileye due to its modular business model, providing autonomous driving technology to other manufacturers like Rimac/Vern, which contrasts with the vertically integrated approach of competitors. This strategy allows Mobileye to focus on its core technology, potentially enabling new business models in the autonomous driving industry as it matures. The analyst sees a long runway for growth if the company gains momentum.

“As an investor this is the kind of move that makes me more interested in a company like mobile ey so we will see how this one plays out for both of these companies Long Runway of growth ahead but but if any of these companies starts getting momentum that's really going to pick up quickly”

The analyst views Mobileye as a leader in autonomous driving technology, providing horizontal services to various automakers globally. They highlight its robust technology stack, including redundancy in sensors, and its significant design wins with major manufacturers, positioning it for a large addressable market despite current unprofitability.

“Mobileye is one of the leaders in this space as far as a horizontal service provider company goes. They've got a bunch of wins, they won a big contract with Volkswagen recently so that could be a huge amount of volume going through the system.”