Mobileye (NASDAQOTH:MBBYF) is pursuing two hot trends in the automotive market right now. Advanced driver assistance systems (ADAS) and autonomous vehicles are both a key focus for automakers, and Mobileye is getting in on them early. That's a wise move, considering that 12 million autonomous vehicles are expected to ht the market in 2035, and ADAS suppliers are expected to bring in $22 billion in revenue by 2020.
But there's no guarantee Mobileye's future road is paved in gold. The company faces strong competition from Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, which is already the clear leader in autonomous driving systems, and from NVIDIA (NASDAQ:NVDA). All three companies are pursuing autonomous driving in their own way, and it's still unclear how the self-driving market will play out. This gives Mobileye an opportunity to make big gains in the growing autonomous market -- if its software can outpace the competition.(NYSE:F)
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends Nvidia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.