Key Stats for Mobileye Stock
- 1-Year Price Change for Mobileye stock: -34%
- $MBLY Share Price as of Jan. 8: $11.24
- 52-Week High: $20.18
- $MBLY Share Price Target: $19.15
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What Happened?
Mobileye (MBLY) stock made headlines today as the autonomous driving technology company announced a $900 million deal to acquire Mentee Robotics, a cutting-edge humanoid robotics startup.
The acquisition marks what CEO Amnon Shashua calls “Mobileye 3.0,” expanding the company’s focus beyond self-driving cars into the broader Physical AI market.
The deal structure includes roughly $612 million in cash and about 26.2 million shares of Mobileye Class A common stock.
Mentee will operate as an independent unit within Mobileye while tapping into the parent company’s advanced AI infrastructure and manufacturing relationships.
The transaction is expected to close in the first quarter of 2026, with first customer deployments planned for later that year and commercial production targeted for 2028.
What makes this acquisition interesting is Mentee’s approach to humanoid robotics. Unlike competitors that rely heavily on teleoperation or massive real-world data collection, Mentee’s robots learn tasks through simulation and human demonstration.
The company showcased an impressive capability: a robot watched a human swap batteries and, after just a few hours of simulated training, learned to perform the task autonomously.
The technology is vertically integrated, meaning Mentee designs everything in-house from proprietary actuators to robotic hands with motor-based tactile sensing.
The third-generation robot stands 175 centimeters tall, weighs 72 kilos, can lift 25 kilos, and features hot-swappable batteries for 24/7 operation.
MBLY stock is down over 33% in the past year. However, given its robust earnings expansion, it could deliver annual returns of 30% over the next two years, according to our valuation model.
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What the Market Is Telling Us About Mobileye Stock
The strategic logic behind the Mentee acquisition centers on deep technological overlap between autonomous vehicles and humanoid robots.
Both operate in physical environments built for humans, require real-time safety verification, require edge-computing efficiency, and must achieve economic scalability.
Mobileye believes its proven safety frameworks, such as Responsibility-Sensitive Safety, can be transferred directly to humanoid robotics, creating a competitive moat.
In the core automotive business, Mobileye stock continues to benefit from strong momentum. The company won 95% of all quote requests from its top 10 customers in 2025 and secured design wins with Volvo and Subaru.
The automotive revenue pipeline now stands at $24.5 billion over the next eight years, roughly 50% more than current annual revenue levels.
CEO Shashua emphasized during the CES presentation that Mobileye is expanding beyond structured environments, such as highways, into unstructured robotics applications.
He drew parallels to how the company conquered ADAS markets, establishing lighthouse customers like AT&T in telecom before scaling across entire verticals.
The same playbook is now being applied to robotaxis, with over 100 ID.Buzz vehicles testing across multiple geographies and driverless operations expected in Q3-Q4 2026.
The acquisition is expected to modestly increase operating expenses by a low-single-digit percentage in 2026.
For Mobileye stock investors, this represents a calculated bet that Physical AI will become a massive growth engine alongside the automotive business.
With labor shortages in fulfillment centers, manufacturing, and elder care, Shashua believes millions of humanoid robots will be deployed within a decade.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
