Mobileye made its name, and money, by supplying automakers with millions of computer vision chips designed to support automotive safety features and advanced driver assistance systems. The Intel subsidiary and publicly traded company later expanded to tackle autonomous driving through its chips and software. Now, co-founder and president Amnon Shashua is taking the company into what he calls Mobileye 3.0. And that means robotics and a hefty acquisition. The Israeli company announced Tuesday during CES in L ...

Core Viewpoint - Artificial intelligence (AI) is significantly transforming various industries, leading to increased spending on AI solutions and infrastructure, which is reflected in the stock market performance of tech companies [1][2]. Group 1: ASML Holding - ASML Holding has seen limited stock price growth despite the surge in demand for AI chips, with only a 5% increase in stock price over the past couple of years [5]. - The company experienced a challenging 2024, with minimal revenue growth and declining earnings due to weak chip demand in personal computers and smartphones [6]. - In Q1 2025, ASML's revenue increased by 46% year-over-year, and earnings nearly doubled, with new equipment orders worth nearly 4 billion euros, marking a 10% increase from the previous year [7][8]. - ASML forecasts 32.5 billion euros in revenue for 2025, a 15% increase from 2024, with potential for faster growth driven by AI demand [8][10]. - The company’s EUV lithography machines are essential for manufacturing advanced chips, and demand for these chips is expected to grow at an annualized rate of 35% through 2033 [10][11]. - Analysts predict an acceleration in ASML's earnings growth due to increased investments in manufacturing infrastructure by foundries and chipmakers [12]. - ASML's stock is trading at an attractive 27 times forward earnings compared to the U.S. technology sector's average of 47 [14]. Group 2: Ambarella - Ambarella is positioned to benefit from the growth in AI, particularly in the automotive sector and IoT devices, with its computer vision chips [15]. - The edge AI market, where Ambarella operates, is expected to grow at a compound annual growth rate of 33% through 2032 [16]. - Ambarella generated $285 million in revenue for fiscal 2025, with over 70% from edge AI applications, marking a 26% revenue increase [17]. - The company reported a 58% year-over-year revenue increase in Q1 of fiscal 2026, reaching $86 million, and an adjusted profit of $0.07 per share [18]. - Ambarella's guidance for the current quarter indicates a 41% year-over-year revenue jump, suggesting potential for stronger growth than currently anticipated [19]. - Analysts expect Ambarella to report a profit this year, with strong bottom-line growth projected for the next few fiscal years [20]. - The company's serviceable addressable market is expected to reach $13 billion in the next five years, indicating long-term growth potential [22].