Why Autonomous Driving Company Mobileye’s Stock Is Rising Wednesday

Mobileye Global ( MBLY ) shares surged over 3% in early trading Wednesday after the autonomous driving company said it delivered the first production-candidate hardware and software of its new EyeQ6 Lite system-on-chip to customers.

The EyeQ6 Lite system-on-chip will “power advanced driver-assistance systems in multiple models launching this year,” the company said in the release.

Mobileye had introduced the EyeQ6 family in 2022, with the EyeQ6L set to be installed in 46 million vehicles in coming years. The EyeQ6 High advanced system-on-chip is on track to launch in early 2025, the company said.

“With the EyeQ6L, the team has once again delivered a system-on-chip that enables sizable gains in performance, safety, and comfort features to our customers, without a material increase in price,” Mobileye CEO Amnon Shashua said in a release.

The company said the new autonomous driving system-on-chip “builds on Mobileye’s 25 years of pioneering work in automotive safety, computer vision, chip design and machine learning, which enabled the widespread adoption of automatic forward collision warning and emergency braking across the automotive industry.”

Shashua added that the company anticipates Advanced Driver Assistance Systems (ADAS) could help “save lives and reduce traffic accidents globally, and with the EyeQ6L, automakers can meet regulatory requirements while delivering meaningful technology improvements to end users.”

Mobileye shares were up 3.8% at $31.26 around 11:45 a.m. ET Wednesday. Despite Wednesday’s gains, the stock has declined nearly 25% since the start of 2024.