Pro Analysis

This stock will rally nearly 20% this year on autonomous driving growth, Goldman Sachs says

Semiconductors are seen on a circuit board.
Justin Sullivan | Getty Images
Semiconductors are seen on a circuit board.

Investors should buy Mobileye shares because the company's earnings will surge in the coming years due to its automated-driving chips sales, according to Goldman Sachs, which upgraded the firm to buy from neutral.

"We expect the stock to re-rate on the back of earnings momentum and potential further wins in fully autonomous driving," analyst Alexander Duval wrote in a note to clients Thursday.

Mobileye creates the chips, cameras and software that make driver-assistance automation possible for automakers.