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When Will Robotaxis Rule the Road?

Last month, we ran down the list of computer vision stocks that could be worth owning and one stood out above the rest. Mobileye (MBLY) is a leading computer vision company at the forefront of developing self-driving technologies for auto manufacturers. The short-lived Intel subsidiary commands an estimated 70% of the advanced driver assistance system (ADAS) market, with more than 150 million vehicles sporting its tech.

In our last article on Mobileye, we asked whether the company’s slowing growth in 2024 represented a buying opportunity. It wasn’t an ironic question. We think the company offers the best way to invest in the coming AV revolution outside of maybe Tesla (more on that later), provided shares are trading at a reasonable simple valuation ratio. In our analysis, we noted that one of our biggest concerns is that AV adoption will occur far more slowly than today’s bullish estimates. One issue is that slower adoption will affect Mobileye’s near-term growth potential. Its flagship Mobileye SuperVision™ platform for higher-level autonomy beyond ADAS represents much higher per vehicle earning potential ($1,500 for SuperVision versus $45 to $50 for ADAS).

Mobileye ADAS and autonomous platforms.
Mobileye ADAS and autonomous platforms. Credit: Mobileye

Another potential problem: The lon

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