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Mobileye Global Inc. MBLY, a leader in autonomous driving and driver-assistance technologies, is likely to benefit from increasing demand for ADAS (advanced driver assistance systems) and autonomous driving features amid rising operating expenses.
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Rising Demand for ADAS, Strategic Partnerships Aid Mobileye
The rising demand for ADAS and autonomous driving features is fueling Mobileye’s prospects. Its cutting-edge technology enhances automotive safety, productivity and vehicle utilization. As the auto industry accelerates toward self-driving vehicles, the company’s innovative solutions like Supervision, Chauffeur, Drive and EyeQ strengthen its portfolio. MBLY is still securing new ADAS deals with its main customers and also finding promising opportunities with new clients. A major tailwind for Mobileye is the growing adoption of multi-camera setups, driven by stricter safety regulations and the push for hands-free highway driving in mass-market vehicles.
Mobileye expects revenues and adjusted operating income to rise year over year in 2025. It estimates revenues in the range of $1.69-$1.81 billion, up from $1.65 billion recorded in 2024. The revenue forecast is based on EyeQ unit sales ranging from 32-34 million units. For the second quarter of 2025, it expects revenues to be up about 7% year over year.
Strategic partnerships and significant design wins are pivotal to Mobileye’s robust growth. With ZEEKR as its launch partner and design wins with automakers like Porsche, FAW, Mahindra and other major OEMs in 2023, Mobileye's prospects are soaring. In March 2024, Volkswagen deepened its partnership with Mobileye to integrate SuperVision and Chauffeur technologies for partially and highly automated driving into series production. In March 2025, Volkswagen announced a collaboration with Mobileye to enhance safety and driving comfort in the former’s upcoming MQB-based vehicle portfolio.
Mobileye’s strong balance sheet, with $1.51 billion of cash/cash equivalents and zero debt as of March 25, 2025, also instills investors’ confidence. This financial flexibility allows MBLY to tap into growth opportunities.
Expected Decline in Customer’s Production Volume to Ail MBLY
Mobileye expects production volume from its top 10 customers to be down 3-7% year over year in 2025. Its shipments of assisted driving technology to China are under pressure due to stiff competition from local players offering similar self-driving software at lower costs. High operating expenses, caused by rising employee compensation and increased military reserve investments, will likely clip operating income.
Even though there will be savings from winding down the LIDAR unit, headcount-related cost pressures will keep overall operating expenses elevated, hindering potential income growth. MBLY expects 7% year-over-year growth in adjusted operating expenses in 2025.