Mobileye (MBLY) stock surged about 11% after announcing a $900 million deal to acquire Mentee Robotics, a startup developing advanced AI‑driven humanoid robots. The move marks a major step for Mobileye as it expands beyond autonomous driving technology and into what it calls the next phase of “physical AI.”
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
According to the agreement, Mobileye will pay about $612 million in cash and issue up to 26.2 million shares of its Class A stock to complete the purchase. The transaction has been approved by Mobileye’s board and Intel (INTC), its largest shareholder. The deal is expected to close in the first quarter of 2026.
The deal stands out because both companies have shared founders. Mobileye CEO Amnon Shashua co-founded both Mobileye and Mentee, and Mentee co-founder Shai Shalev‑Schwartz also serves as Mobileye’s chief technology officer.
Mobileye Sees Long-Term Value in the Deal
Importantly, Mentee Robotics has developed a cost‑efficient, fully integrated humanoid robot platform designed for real‑world use. Its system handles scene perception, navigation, object detection, grasping, and manipulation, allowing robots to perform complex tasks on their own without human control.
Mobileye says the acquisition will speed up its push into robotics by combining its large-scale production and self‑driving expertise with Mentee’s humanoid platform and AI talent.
The company expects the deal to raise its operating costs in 2026 by a low single-digit percentage, but believes it will deliver strong long-term value as Mobileye expands beyond automotive autonomy.
Mentee will continue operating as an independent unit within Mobileye, with early customer tests planned for 2026 and full commercial production aimed for 2028.
Is Mobileye a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MBLY stock based on eight Buys and seven Holds assigned in the past three months. Further, the average Mobileye price target of $17.47 per share implies 43.43% upside potential.
