Analyst Remains Cautious on Mobileye (MBLY) as Infineon Acquires LiDAR Company Innoluce
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Analyst Trip Chowdhry noted the following on Tuesday:
Fundamental problem with MBLY technology is that one cannot get the location accuracy of 1 cm to 1.5 cm using MBLY Camera technology, which is essential for driverless cars
- LiDAR is the only technology that can provide the location accuracy of 1 cm to 1.5cm
- TSLA is creating their own LiDAR sensors, and its cost point could be closer to $69...Cameras play a tertiary role and not a primary role
We will answer this question by series of questions...
- MBLY is a component provider, Bosch is the part supplier, and Autos are the end product ...Question for investors, why do you think MBLY has the pricing power in the above value chain?
- Can you name any single Auto component provider, who is a single trick pony like MBLY, and has revenues of $1 Billion ...we cannot find any company...what gives one a confidence that MBLY can generate huge revenues on Obsolete technology
- MBLY revenues are probably okay for the next 6 to 8 months...beyond that we have doubts ...this is the other Violin Memory (VMEM) in making ...lot of Noise, but zero fundamentals
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