Should I Buy Mobileye (MBLY)? Finance YouTuber Analysis

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.” — ▶ Watch clip

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.” — ▶ 00:07:00

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” — ▶ 01:00

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” — ▶ 9:30

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” — ▶ 9:10

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.” — ▶ 10:00

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” — ▶ 10:00