MBLY Stock Forecast & Price Target

Mobileye Global Inc. has demonstrated significant growth potential, as evidenced by its robust $24.5 billion automotive revenue pipeline, which has increased over 40% since early 2023 and is expected to deliver substantial returns in the latter part of the decade. The company’s net sales revenue is projected to rise by 14.51% year-over-year, reaching $1.89 billion by December 2025, alongside a remarkable 51% year-over-year increase in operating cash flow to $602 million, indicating strong financial health and operational efficiency. Furthermore, Mobileye's strategic focus on integrating vehicle autonomy with humanoid robotics establishes multiple avenues for revenue growth and enhanced profitability, positioning the company favorably for long-term shareholder value creation.

Mobileye Global Inc. reported a 9% year-over-year revenue decline in Q4, amounting to $446 million, primarily due to an 11% decrease in EyeQ SoC volumes attributed to inventory adjustments at Tier-1 customers. The company's gross margins are projected to decrease from approximately 75% in 2022 to around 65% by 2026, further exacerbated by a mix shift towards the less profitable EyeQ 5 product. Additionally, EBIT guidance fell short of market expectations due to increased R&D expenses from the Mentee Robotics acquisition, and the revenue outlook for FY26 was revised downward, indicating potential challenges in sustaining growth amid declining unit volumes from key customers.