Innoviz: High-Risk Mobileye Derivative

Summary

• Innoviz is a promising LiDAR player with partnerships (VW, Mobileye) that could lead to significant growth in the coming years.
• The future of the LiDAR market remains highly uncertain though, with a number of alternative technologies still competing for supremacy.
• Innoviz's revenue growth is strong at the moment, but this is due to engineering services rather than product sales. Innoviz's business isn't really expected to inflect until 2026-2027.
• Despite a seemingly modest valuation, Innoviz's stock is risky due to uncertain market timing, technology adoption, and its relatively weak balance sheet.