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4. Mobileye (NASDAQ:MBLY)  

Short Interest as % of Shares Outstanding: 12.57%

Number of Hedge Fund Investors in Q2 2024: 28

Mobileye (NASDAQ:MBLY), headquartered in Israel, specializes in advanced driver-assistance systems (ADAS) and autonomous driving technologies. The company is majority-owned by Intel, and its vision-based systems are integrated into millions of vehicles from over 50 automakers, including Ford, General Motors, Honda, Nissan, BMW, Audi, and Volkswagen, helping to enhance both safety and driving efficiency.

In Q2, Mobileye (NASDAQ:MBLY) saw an impressive 84% quarter-over-quarter increase in revenue, reaching $439 million. However, the company decreased its full-year outlook to $1.7 billion, compared to previous estimates of $1.83 billion, due to market weakness in China. Despite this, the company remains optimistic about its long-term growth, with strong volume expectations for 2025 and beyond, particularly from Western and Chinese original equipment manufacturers (OEMs) as they roll out Mobileye’s (NASDAQ:MBLY) advanced system, known as  SuperVision.

Mobileye (NASDAQ:MBLY) is well-positioned to benefit from the shift toward more advanced, higher-priced systems. The company has identified key drivers for long-term growth in the ADAS market, with systems like EyeQ6, a custom hardware and software solution for ADAS and autonomous systems, expected to boost average selling prices and drive significant growth. Additionally, Mobileye’s (NASDAQ:MBLY) Road Experience Management (REM) system enhances real-time road data collection, improving the safety and effectiveness of autonomous driving. The company’s Responsibility Sensitive Safety (RSS) model and True Redundancy approach offer greater reliability in autonomous systems compared to competitors who focus solely on camera-based solutions. By incorporating radar and lidar systems, Mobileye (NASDAQ:MBLY) lidar systems deliver more accurate, higher-value solutions.

According to a report by Markets and Markets, the global ADAS market to grow from 334 million units in 2024 to 655 million units by 2030, at a CAGR of 11.9%. Given Mobileye’s (NASDAQ:MBLY) cutting-edge systems, expanding customer base, and strong market presence, the company is poised for significant upside potential. While 12.57% of the company’s shares are shorted, 28 hedge funds have maintained a bullish sentiment on the stock as of the second quarter with stakes worth $455.40 million.