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Rosenblatt analyst Kevin Cassidy noted that Mobileye Global Inc (NASDAQ: MBLY) is the latest casualty in the slowing automotive end market.
The analyst noted that while semiconductor content increases in automobiles are a clear trend, supply has generally caught up to demand.
Shorter lead times, increasing inventory, higher interest rates, and rising sticker prices are causing a demand slowdown. The analyst flagged that this slower demand environment is continuing.
Cassidy expected to learn some details on the current automotive market at CES this week.
The analyst will meet with companies with automotive exposure, including Ambarella, Innoviz, Navitas, onsemi, Qualcomm, and Synaptics.
Qualcomm Inc (NASDAQ: QCOM) has been aggressively updating its Snapdragon XR Platform for many years.
Cassidy noted Qualcomm as being the leader in virtual reality SoCs.
Qualcomm's advantage is the pricing, technology, and ecosystem of support leveraged from the Snapdragon core design refined over years of high-volume production in handsets.
The virtual reality headset market will eventually find the correct feature set that meets consumers' needs, as per Cassidy.
Arm Holdings Plc's (NASDAQ: ARM) licensing pipeline for generative AI licenses is strengthening based on Cassidy's checks in Asia and Silicon Valley in December, which is additive to the already rich v9 architecture roadmap, share gains in PC, DC, and significant royalty rate increases complemented by the new CSS program.
Monolithic Power Systems, Inc's (NASDAQ: ...