Mobileye rated buy despite recent stock drop, strong Q1 growth, and strategic AI moves.

Mobileye has been initiated with a buy rating due to its long-term growth potential, despite recent stock weakness and softer near-term guidance. The company reported a strong Q1 with 27% year-over-year revenue growth and a 51% increase in adjusted EPS, raising its full-year guidance. Mobileye is advancing into robotaxis and robotics through acquisitions and partnerships, positioning itself as a leader in physical AI. While competition remains a risk, the stock's current valuation near multiyear lows presents an attractive opportunity for patient investors.