Mobileye Global (NASDAQ:MBLY) shares jumped more than 7% in premarket trading Monday after the company announced a massive production win with a "top-ten" U.S. automaker.
The deal will see Mobileye’s next-generation EyeQ6H chip power hands-free driving systems as standard equipment across millions of vehicles, spanning both mass-market and premium models.
The agreement significantly expands Mobileye’s forward-looking production volume.
The company now estimates future deliveries of more than 19 million EyeQ6H-based Surround ADAS systems, with approximately 9 million units tied to this new U.S. partner and existing programs with Volkswagen Group.
The EyeQ6H chip is designed to consolidate multiple driving and safety functions onto a single electronic control unit (ECU), allowing automakers to reduce hardware complexity and costs in the increasingly competitive "software-defined vehicle" market.
The move comes at a critical time for the Jerusalem-based tech leader, which saw its stock price nearly halve in 2024 amid a sluggish rollout of fully autonomous vehicles.
By pivoting focus toward advanced driver-assistance systems (ADAS) like "Surround ADAS," Mobileye is targeting the immediate demand for hands-free, eyes-on highway driving.
The system utilizes up to 11 sensors—including cameras and radars—alongside REM™ crowdsourced mapping data to enable automated lane changes, traffic-jam assistance, and over-the-air software updates.