Skip to Content
Stock Strategist

The Road Ahead Looks Promising for Intel's Mobileye

The leader in advanced driver-assistance systems contributes only a small part of the chipmaker's overall revenue for now, but sales are growing.

Mentioned: , ,

Because of Mobileye's relatively small contribution to Intel's (INTC) total sales (only 1% of 2018 revenue), we understand why many investors might overlook the subsidiary and even question why Intel owns this business at all when it faces stiff competition in its core PC and data center segments. But since Intel acquired Mobileye in 2017 for $15.3 billion, the leader in advanced driver-assistance systems, or ADAS, has been steadily increasing its annual design wins while growing revenue at a healthy double-digit rate. The firm is on track to surpass $1 billion in sales in 2020, and we believe it will approach $3 billion by 2023, which supports our assumptions of mid-single-digit revenue growth for Intel as a whole.

Founded in 1999, Israeli-based Mobileye supports automotive vision systems that use cameras, processors, and pertinent software algorithms. While the camera can come from a variety of suppliers, Mobileye's contributions revolve around the processor that makes the camera "smart" (EyeQ vision processor) and overarching software algorithms that identify objects such as pedestrians and other vehicles. In contrast to competing solutions that use visual detection, radar, and lidar sensors, Mobileye primarily focuses on the visual aspect of sensing for its ADAS features (a single camera mounted in the rear-view mirror). Mobileye does not eschew radar or lidar sensors—rather, it plans to use a camera-centric approach to build full autonomous vehicle capability, then add radar and lidar as a secondary layer for true redundancy. Given its existing portfolio of computer vision products found in vehicles today, we expect Mobileye (and thus Intel) to be a meaningful player in future AVs.

Abhinav Davuluri does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.