Mobileye Global Inc.’s (MBLY) stock rallied almost 9% in pre-market trading on Tuesday following its collaboration with German automaker Volkswagen Group (VWAGY) and France-based tech firm Valeo (VLEEY). Meanwhile, Volkswagen (VOW) German-listed shares gained over 1% as of writing.
Mobileye and Valeo operate in the automotive technology space, providing advanced driver assistance systems (ADAS) and other technology for vehicles worldwide. Mobileye is owned by U.S.-based technology company Intel (INTC).
More Details on the Collaboration
The collaboration integrates Mobileye’s Surround ADAS platform with Valeo’s sensor technology into a single, unified system for Volkswagen’s next-generation vehicles. By consolidating multiple ECUs (electronic control units) into a central unit for the first time, this approach enhances efficiency, improves system performance, and enables over-the-air updates to meet evolving safety standards.
For Volkswagen, this tie-up seeks to improve safety and driving comfort in Volkswagen’s future MQB-based vehicle lineup as it expands its supplier network to enhance assisted and autonomous driving. Volkswagen stated that the new system will introduce features such as hands-free driving on approved highways, traffic jam assistance, hazard detection, parking assistance, and 360-degree emergency support, thereby helping it in its transformation journey.
Meanwhile, Mobileye CEO Prof. Amnon Shashua stated that the collaboration with Valeo and Volkswagen brings AI-driven innovations into practical use. This system, he noted, represents a step toward a new era of driving technology.
Is Mobileye Global a Good Stock to Buy?
Wall Street analysts have a Moderate Buy consensus rating on MBLY stock based on eight Buys, six Holds, and one Sell assigned in the past three months. Meanwhile, the average Mobileye share price forecast of $19.27 per share implies a 26.3% upside potential.
Year-to-date, MBLY stock has gained 18%.
