Mobileye Global Inc Shares Rise

Investing.com — Mobileye Global Inc (NASDAQ:MBLY) shares rose over 6% to $18.12 following the company's investor event, indicating potential significant automotive deals ahead.

RBC Capital Markets reported, based on slides from the investor event in Munich, Germany, that a Japanese automaker may soon reach the nomination stage for a Mobileye deal, typically occurring two to three months before a formal award.

The company is also reportedly in advanced discussions with a European automaker regarding Surround ADAS (advanced driver-assistance systems) and a U.S. automaker that is currently in negotiation, according to an RBC note on Wednesday.

Potential candidates among Japanese automakers include Honda (NYSE:HMC), Toyota (NYSE:TM), Nissan (OTC:NSANY), and Mazda. A deal with Honda or Toyota would be especially significant due to their high production volumes.

RBC speculated that the U.S. automaker in negotiations could be General Motors (NYSE:GM), while Stellantis (NYSE:STLA) or Renault (EPA:RENA) might be the European automaker nearing nomination.

An analyst noted that since MBLY shares have already traded up before the event, it's uncertain how the stock will respond. However, the potential for securing advanced driver-assistance system contracts remains a key focus for investors.

The likelihood of Mobileye nearing these deals is expected to enhance investor sentiment, although RBC does not anticipate an award announcement during the event itself. Progress in discussions is viewed positively.