Mobileye imaging radar chosen for automated driving

Mobileye (MBLY) has been selected by a major global automaker to supply its Imaging Radar technology for SAE Level 3 automated driving systems in personal vehicles starting in 2028. The radar technology, developed since 2018, enables hands-off, eyes-off driving at highway speeds in adverse conditions and adds a height dimension to traditional radar data, enhancing environmental perception. Mobileye's President highlights the technology's potential to meet safety and accuracy demands for self-driving, strengthening Mobileye's position in the autonomous driving market since its separation from Intel (INTC).

Analysis

Mobileye (NASDAQ:MBLY) has secured a significant design win with a major global automaker for its Imaging Radar™ technology, slated for implementation in personal vehicles starting in 2028 to enable SAE Level 3 automation. This system aims to provide eyes-off, hands-off driving capabilities at highway speeds, even in adverse conditions like heavy rain or fog, by adding a height dimension to radar data and offering high-precision environmental perception up to 315 meters for road users and 230 meters for hazards. Mobileye's proprietary radar processor and RFICs are key to this capability, handling over 1,500 virtual channels at 20 frames per second, reinforcing its market position in advanced driver-assistance systems (ADAS) and autonomous vehicles (AV), building on its existing EyeQ technology present in over 200 million vehicles. This positive development for Mobileye, reflected in its high individual sentiment score, contrasts with recent news concerning its former parent, Intel (NASDAQ:INTC). Intel's finance chief indicated that upcoming chip manufacturing volume for external customers remains low, despite ongoing development of its 18A and 14A technologies which are being tested by Nvidia and Broadcom. Furthermore, Intel experienced a 182 basis point decline in its microprocessor market share in Q1 2025, settling at 65.3%, and analyst firms like Deutsche Bank and Stifel maintain Hold ratings with price targets of $23 and $21 respectively, signaling caution around Intel's foundry business transition and competitive pressures.

Key Decisions for Investors

• Investors should view Mobileye's contract win as a strong validation of its advanced radar technology and a positive catalyst for long-term growth in the autonomous driving market, warranting close monitoring of execution towards the 2028 deployment.
• For Intel, the persistent challenges in scaling its foundry services for external clients, coupled with declining microprocessor market share and cautious analyst sentiment, suggest continued headwinds; progress on 18A and 14A manufacturing adoption by major clients will be critical.
• Consider the divergent trajectories of Mobileye and Intel, reflecting specific sub-sector dynamics within technology; Mobileye demonstrates leadership in a high-growth niche, while Intel navigates a complex turnaround in the broader semiconductor industry.