Mobileye: 2Q26 Review: Messy Print In Relation To Margin Dynamics While Program Ramps Continue To Remain On Track; CEO Steps Down

Research evidence excerpt

Mobileye: 2Q26 Review: Messy Print In Relation To Margin Dynamics While Program Ramps Continue To Remain On Track; CEO Steps Down

Joseph Cardoso AC North America Equity Research

(1-212) 622-9036 23 July 2026 J P M O R G A N

joseph.cardoso@jpmchase.com

Risks to Rating and Price Target

Industry Upside Risks

Pace of adoption of autonomous driving may be higher than expected. As the scale of

adoption of the ADAS and other autonomous functionalities increase, it would become

easier for the suppliers to provide the systems at lower cost, which would further fuel the

adoption at a pace higher than current industry expectations.

Automotive production may track better. Industry analysts are forecasting a modest

decline in shipments in 2026, however, macro conditions such as interest rate cuts may result

in eventual demand tracking better than current expectations.

Company-Specific Upside Risks

Mobileye’s OEM customers gain market share. OEMs that are currently being served by

Mobileye may gain market share relative to other OEMs, driving higher shipments for

Mobileye’s products.

Taking market share from component-based competitors. Mobileye competes with

various automotive chip manufacturers that have Tier 2 relationships with OEMs as they

supply just the compute hardware for ADAS/autonomy solutions. However, OEMs may

increasingly start to prefer full solutions, thereby driving better market share and higher

shipments for Mobileye.

Industry Downside Risks

Regulatory challenges relative to mass adoption of Robotaxis and autonomous

driving. Although the sentiment for Robotaxis and autonomous driving has improved in

recent times, regulatory challenges could still limit the pace of broader adoption.

Global macro may challenge automotive demand.