Morgan Stanley Weighs In On Semiconductor Space

Analysts at Morgan Stanley issued a report saying that semiconductor companies have been vocal about their intentions to participate in the advanced driver assistance systems market, however Morgan Stanley notes, “We do not believe Mobileye NV MBLY needs to be looking over its shoulder any time soon.”

Morgan Stanley wrote, “Semiconductor players, led by NIVIDIA Corporation, are targeting the automobile and looking to grow beyond infotainment.” The technology company said it will extend its current partnership with Audi and it seeks to integrate its performance technologies into the automobile industry.

However, Morgan Stanley points out that NIVIDA NVDA is not looking to start a competition with Mobileye, rather, “NVDA insists that it does not view MBLY as a competitor, that its automotive ambitions within ADAS are “complementary” to MBLY and that it does not want to get into vision ADAS, per se. NVDA appears to be pursuing camera/video fusion and graphics processing rather than vision-analysis algorithms that MBLY specializes in.”

Mobileye has an over 80 percent share in the advanced driver assistance systems market and Morgan Stanley believes that the company is the best pick of the NA auto supplier group. The firm rates Mobileye as Overweight with a $65 price target.

Mobileye recently traded at $39.69.