The end of last week was pretty gloomy for shareholders in chip company Intel, which fell 17% on Friday following the release of its financials after the close on Thursday. Nor was there much joy from Mobileye (79.8% owned by Intel), which fell by a cumulative10% in the Thursday and Friday sessions, and closed the week at under $10 for the first time ever ($9.80). The Israeli autotech company currently has a market cap of $8 billion.
Mobileye, which develops driving aid systems and solutions for autonomous vehicles, was a listed company when it was bought by Intel for $15 billion in 2017. It was floated again in late 2022 at a valuation close to $17 billion, more than double its current market cap. It is now down 53% on its flotation valuation and 79% below the peak it reached a few months later.
2026 growth forecast disappoints
The fall in the share price of Mobileye, which is headed by its founder Amnon Shashua, at the end of last week came after it released financials for 2025 and guidance for 2026. The company’s revenue grew by 14.5% in 2025 to nearly $1.9 billion, ahead of its own guidance. It posted a net loss of $392 million, and a net profit on a non-GAAP basis of $286 million.
Mobileye’s revenue guidance for 2026 is $1.90-1.98 billion, meaning modest growth of 2.4% at the middle of the guidance range, which disappointed investors and sent the share price tumbling. The company sees adjusted operating profit (non-GAAP) this year of $170-220 million, which compares with $280 million in 2025.
Cash flow from operations was $602 million last year, at the end of which the company had $1.8 billion cash. Mobileye recently announced the acquisition of Mentee Robotics for $900 million (of which $612 million is in cash). Shashua was one of the founders of the company, which deals in humanoid robotics, and he will receive $341 million in the insider deal.
On the release of the 2025 results, Shashua said, “We enter 2026 with strong momentum and a cash-generative business that enables us to fund continued investment in advanced product execution across our portfolio. Our ambition is to be a comprehensive leader in Physical AI, encompassing both autonomous vehicles and humanoid robotics.”
Following the financials and the guidance analysts covering Mobileye cut their price targets, among them analysts at Needham and UBS. According to Wall Street Journal data, sixteen analysts currently have positive ratings for Mobileye and fourteen are neutral on the stock. Their price targets range widely, between $10 and $27, or premiums of between 2% and 175% on the market price.
Published by Globes, Israel business news – en.globes.co.il – on January 26, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
