One I Missed

Mon, 2017/03/13 - 1:49pm | Your editor
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I admit it. Despite my ambitious coverage of Israeli tech stocks, I did not take seriously the maker of software for autonomous vehicles, Mobileye, NYSE-MBLY, of Jerusalem. Now it is being bid for by Intel which is offering $15.3 bn to acquire it—and the share is up by nearly a third so far today.

INTC says that cars “are becoming data centers on wheels” and predicts that by 2020 driver-less cars will generate 4000 gigabytes of data daily, which can be mined for information. By buying up MBLY it expects to become a leader in this technology.

This is the largest ever tech acquisition in the history of the Jewish state and the HQ of the new venture will remain in Jerusalem. One reason is that Israel is testing lots of ideas for future driving, with, for example, the pilot “electric road” opened less than a year ago near Tel Aviv. It can charge up the batteries of electric cars and buses as they drive along it, but leaves non-battery vehicles alone.

Of course I am not as badly off as short-seller Citron Research which a couple of months ago called Mobileye “the most outrageously overprices, overhyped semiconductor stock ever.”

While we missed the big one, we did gain a bit from autonomous driving stocks elsewhere, discussed below.

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