Two Israeli cos poised to gain from auto AI hype

As Tesla sees its share price hit new peaks despite a decrease in car deliveries due to investors’ enthusiasm for the potential of AI in the automotive industry, two Israeli companies are in a good position to take advantage of the AI revolution in cars, but both are encountering obstacles.

The first is advanced driving assistance systems (ADAS) company Mobileye Global Inc (Nasdaq: MBLY), which is considered a technological leader in the autonomous vehicle field, but receives rather low marks when it comes to “cultivating” its stock and marketing its AI capabilities to analysts and investors.

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Mobileye only began to publicize its considerable capabilities in the field at the beginning of the year, but in a relatively low key way. Consequently, it missed out on the huge AI “hype” in the capital markets, which is pushing the shares of Tesla and other companies to new heights. But at the upcoming CES exhibition in January, Mobileye will also ride the wave and present breakthroughs, which may enhance its attractiveness for potential buyers if Intel decides to sell its shares in a single package.

The second Israeli company, whose automotive activities are still almost under the radar, is Hailo, which develops chips to accelerate AI applications in edge devices. Last year, the company had a breakthrough when its chips were integrated into ADAS systems of a major Chinese manufacturer, and it is likely to have signed contracts with additional manufacturers.

This activity will be revealed if and when Hailo holds a Wall Street IPO next year, but the main problem is its bet on the Chinese auto industry. There is a lot of money there, but during a time of technological-political war between the superpowers, supplying advanced AI chips to the Chinese is an issue that major Western investors are avoiding like the plague.

Published by Globes, Israel business news – en.globes.co.il – on September 29, 2025.

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