Mobileye Stock Soars on Major Deal to Power Hands-Free Driving
Shares surged after the company announced a deal with a top global automaker to supply its camera-based 'Surround' ADAS technology for approximately 9 million vehicles.
Mobileye Global Inc. (NASDAQ: MBLY) shares jumped more than 8% in morning trading after the company revealed a landmark deal to supply its advanced driver-assistance system (ADAS) to one of the world's largest automakers.
The Jerusalem-based technology firm, a leader in computer vision for automobiles, announced that a second top-10 global automaker has selected its EyeQ6H-based 'Surround' platform. The technology will power hands-free highway driving features in a vast production run expected to cover approximately 9 million vehicles over the life of the agreement.
Shares of Mobileye rose sharply on the news, gaining over 8% to trade at $11.30. The deal provides a significant boost to the company's production pipeline and reinforces its strategic shift toward more comprehensive, camera-based ADAS solutions.
This agreement marks a major validation of Mobileye's approach, which relies on a sophisticated suite of cameras and its proprietary EyeQ6H system-on-chip to deliver premium driver-assist functions. According to the company's official announcement, the system enables features like automatic lane changes and evasive maneuvers, all processed on a single, power-efficient chip.
The automaker, which remains unnamed, joins other major players like the Volkswagen Group in adopting Mobileye's more advanced ADAS platforms. While Mobileye has long dominated the market for basic front-facing safety cameras—with its technology in over 200 million vehicles—these new 'Surround' design wins represent a crucial move up the value chain.
"This is a significant win for Mobileye, not just in volume but in strategic direction," one technology analyst noted. "It proves that their camera-only approach can deliver the high-level, hands-free experience that automakers are eager to offer consumers, without the cost and complexity of integrating lidar."
Intel, which remains Mobileye's majority shareholder after spinning the company off in a 2022 IPO, also stands to benefit from the increased demand for the advanced EyeQ chips. The deal underscores the growing importance of semiconductor technology in the automotive sector, a key growth area for chipmakers.
Despite its dominant market share of over 50% in the core ADAS space, Mobileye has faced increasing pressure from competitors like Nvidia and Qualcomm, which are aggressively courting automakers with their own comprehensive hardware and software platforms. Tier 1 suppliers and even some automakers developing in-house solutions have also intensified the competitive landscape. This large-scale commitment from a major OEM provides a powerful defense of Mobileye's market leadership and technological prowess.
The deal comes on the heels of a solid performance for Mobileye. The company recently reported Q3 2025 revenues of $504 million, a 4% year-over-year increase, and raised its full-year guidance, signaling strong underlying demand for its products.
Investors will be watching closely to see how the revenue from this multi-year deal is phased into the company's earnings. While the agreement provides long-term visibility, the scale of the 9-million-vehicle rollout means the financial impact will be staggered over several years as the new models enter production. Nonetheless, the market's immediate, positive reaction highlights the strategic importance of securing high-volume, high-value contracts in the rapidly evolving world of automotive technology.