Mobileye shares surged 8% after announcing upgraded collaboration with Volkswagen, signaling potential recovery

From Yahoo Finance: 2025-03-25 15:25:00

Shares of Mobileye (NASDAQ: MBLY) surged 13.6% before settling at an 8% gain after announcing an upgraded collaboration with Volkswagen (OTC: VWAGY). Volkswagen will implement Mobileye’s Surround ADAS system in its vehicles, signaling a potential recovery for Mobileye after a tough year. The partnership includes self-driving company Valeo providing sensors and ECU integration. Volkswagen will incorporate the new technologies for Level 2+ self-driving on highways and other driving features. The new system will be part of Volkswagen’s MBQ architecture for high-volume models, potentially benefiting Mobileye’s volume. Mobileye closed a challenging year with a 20% revenue drop but forecasts a return to growth in 2025, with estimated revenue at $1.75 billion. The company will report Q1 earnings in April, possibly updating its outlook due to the enhanced VW partnership. Motley Fool Stock Advisor analysts did not include Mobileye Global in their top 10 stocks list, highlighting other investment opportunities. The average return for Stock Advisor is 859%, outperforming the S&P 500, with potential for significant returns with their recommendations. Billy Duberstein and his clients have no position in the mentioned stocks. The Motley Fool recommends Mobileye Global and Volkswagen Ag.

Read more: Why Mobileye Shares Rallied Today