Core Viewpoint - Goldman Sachs downgraded Mobileye Global (MBLY.US) from "Buy" to "Neutral" due to competitive landscape and high stock valuation, maintaining a 12-month target price of $17 [1] Group 1: Stock Performance and Market Position - Since Goldman Sachs rated Mobileye as "Buy" in November 2022, the stock has declined by 38%, while the S&P 500 has increased by 52% [1] - Mobileye holds over 50% market share in the ADAS market, covering most major automakers' L1/L2 projects [3] Group 2: Competitive Landscape - Mobileye faces competition from automakers' in-house projects and other chip/system providers, with some automakers considering licensing L4 autonomous driving technology from companies like Tesla or Waymo [2] - Several automakers, including Ford, General Motors, Honda, and Nissan, have announced plans to pursue L2++/L3/L4 projects based on in-house or competitor technologies, potentially reducing market opportunities for Mobileye [3] Group 3: Future Prospects and Challenges - Mobileye expects more design contracts for its SuperVision and Chauffeur products by the end of 2024, but recent contract announcements have been limited [4] - Revenue from China is declining, with the share of revenue from the region expected to drop from 31% in 2023 to 26% in 2024, attributed to tariffs, inventory adjustments, and loss of market share [4]

Core Viewpoint - Analog Devices, Inc. (ADI) has provided a third-quarter earnings outlook that exceeds Wall Street analysts' expectations, signaling a strong recovery in demand for analog chips, particularly in the automotive and industrial sectors [1][2] Financial Performance - For the second fiscal quarter ending May 3, ADI reported total revenue of approximately $2.64 billion, representing a year-over-year growth of 22%, surpassing the average analyst expectation of $2.51 billion [2] - The company's non-GAAP earnings per share for the second quarter were $1.85, exceeding Wall Street's average expectation by $0.15 [2] - ADI expects third-quarter revenue to reach $2.75 billion, with a fluctuation of $100 million, which is higher than the average analyst expectation of $2.62 billion [1] Market Demand and Trends - The demand for ADI's analog chips is recovering, driven by strong needs in the automotive and industrial sectors, as well as the integration of generative AI into consumer electronics and electric vehicles [1][2] - The company's industrial segment revenue grew by 17% year-over-year to $1.16 billion, while the automotive segment revenue increased by 24% to $849.5 million [3] - The overall analog chip industry is experiencing a recovery, with competitors like Texas Instruments and Onsemi also showing stable performance [2][4] Strategic Positioning - ADI is recognized as a leading player in the analog chip market, focusing on high-performance analog, mixed-signal, and digital signal processing technologies [3] - The company is well-positioned in stable markets such as industrial and electric vehicles, which are characterized by long cycles, providing a competitive advantage [4] - Major financial institutions, including Citigroup and Morgan Stanley, have given ADI a "buy" rating, indicating confidence in its growth potential amid the industry's recovery [4][5]

Group 1 - Goldman Sachs assigns a "Neutral" rating to Tesla (TSLA.US) with a target price of $235, emphasizing the importance of Tesla's Full Self-Driving (FSD) software capabilities in the Chinese market for its future performance [1] - China has become Tesla's largest automotive market globally, with significant new car sales over the past year, partly due to the country's large automotive market size and high Battery Electric Vehicle (BEV) penetration rate, which has exceeded 30% [1] - Tesla's market share in China remains stable at a high single-digit percentage, while its BEV market share in the U.S. has dropped to about 45% and to low double digits in Europe [1] Group 2 - Tesla's FSD faces competition from local rivals that offer Advanced Driver Assistance Systems (ADAS) as standard on mainstream models, such as NIO's NAD service and Xpeng's XNGP, which exert competitive pressure on Tesla's FSD [1] - The level of Tesla's FSD technology and its cost improvements relative to competitors will be crucial for its long-term economic viability in the autonomous driving sector [1] - Tesla's consumer research scores in China are higher than in North America and Europe, particularly in "net purchase consideration" and "net favorability" metrics [2] Group 3 - Goldman Sachs will monitor whether Tesla's consumer research scores in North America and Europe improve with CEO Elon Musk's renewed involvement in company affairs and the introduction of new models planned for 2025 [2] - The $235 target price is based on an estimated 100 times price-to-earnings ratio for earnings per share from Q4 2025 to Q4 2028 [2] - In a pessimistic scenario, if sales growth slows and profit margin improvements are below expectations, the stock price could drop to around $150; conversely, in an optimistic scenario, the stock price could reach approximately $345 if the non-GAAP earnings per share in 2027 is applied with a 100 times price-to-earnings ratio [2]