US Autos & Industrial Tech_ CES 2025 takeaways

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the US Autos & Industrial Tech sector, particularly insights from CES 2025 and discussions with various companies including Mobileye, Aptiv, Visteon, Gentex, Innoviz, Luminar, Ambarella, Continental, BlackBerry, and Jabil [1][2]. Core Insights and Arguments Mobileye - Mobileye positions itself as a tech enabler of autonomy, emphasizing a cost-effective and scalable approach for OEMs, but has not secured major wins since CES last year [3][4]. - The company believes it can convert potential program awards into contracts, with expectations for SuperVision and Chauffeur products to be deployed in 2026 and 2027 respectively [6][9]. - Mobileye's stock has seen a 22% decline since January 7, 2025, attributed to the lack of new awards at CES and competition from other vendors like Nvidia [4][10]. - Key risks include market share competition, geopolitical tensions affecting operations in China, and reliance on HD maps for driving policy [13]. Aptiv - Aptiv highlighted its focus on cost and flexibility for OEMs, showcasing its ability to use various chip vendors to enhance customer time to market [14][15]. - The company is seeing increased interest in L2-L2++ designs, with its Gen 6 ADAS expected to ship in 2026 [15][16]. - Aptiv's stock is rated as a Buy, with a 12-month price target of $71 [17]. Visteon - Visteon is focusing on AI in the cockpit, offering an end-to-end solution that is both power and cost-efficient for OEMs [19][20]. - The company believes it can achieve a 2X content uplift with its AI cockpit solutions compared to non-AI systems [22]. - Visteon is rated as a Buy, with a price target of $108 [25]. Gentex - Gentex showcased innovations in thermal imaging technology and driver monitoring systems, with a focus on upcoming regulations for nighttime pedestrian detection [28][29]. - The company announced a definitive agreement to acquire VOXX International, expected to increase annual revenue by $350 million to $400 million [35][38]. - Gentex is rated as Neutral, with a price target of $30 [39]. Innoviz - Innoviz is strengthening its relationships with Mobileye and Nvidia, with expectations of receiving over $80 million through a multi-year NRE payment plan [41][45]. - The company is rated as Neutral, with a price target raised to $2 [47]. Luminar - Luminar's Halo lidar product is expected to launch in 2026/2027, with significant improvements in performance and cost [50][51]. - The company is rated as a Sell, with a price target lowered to $7 [57]. Ambarella - Ambarella is focusing on its CV3 chip for automotive applications, with expectations of revenue ramping in 2026 [59][60]. - The company is exploring opportunities in telematics and edge AI applications [63]. Continental - Continental is developing scalable ADAS/AV solutions and emphasizes the importance of power efficiency in chip selection [66][68]. - The company is collaborating with Aurora for autonomous trucking, with plans to manufacture the Aurora Driver system starting in 2027 [69]. BlackBerry - BlackBerry is narrowing its focus on QNX solutions to simplify vehicle software development for OEMs [71][73]. - The company is positioning itself to capitalize on the growing demand for software-defined vehicles [73]. Jabil - Jabil is well-positioned to support OEMs in autonomy, connectivity, electrification, and software-defined vehicles, with a 95% win rate in these areas [75][76]. - The company expects growth in its automotive segment, particularly tied to EVs [77]. - Jabil is rated as a Buy, with a price target of $160 [83]. Other Important Insights - The conference highlighted the increasing role of AI in automotive technology, particularly in enhancing product capabilities and development for autonomous vehicles [2]. - Geopolitical challenges and supply chain resiliency were emphasized as critical factors for OEMs in navigating the current market landscape [2][10]. - The competitive landscape is intensifying, with traditional tech companies entering the automotive space, raising concerns about market share for established players [25][13].