Mobileye (MBLY 14.84%) stock is rocketing higher in Monday's trading. The machine vision specialist's share price was up 16.4% as of 1 p.m. ET amid a 0.6% increase for the S&P 500 index and a 1.1% gain for the Nasdaq Composite index.

Mobileye's valuation is surging following a recent report from TechCrunch that signals a big win for the company. According to the report, Lyft will be launching self-driving taxis using Mobileye's technologies in the not-too-distant future.

Mobileye stock rockets higher on Lyft's robotaxi news

Lyft is reportedly gearing up to launch a robotaxi service built on Mobileye's tech as early 2026. The service is set to launch in Dallas as its first market, and there are plans to build a fleet of thousands of self-driving vehicles across multiple cities after the initial debut. The news signals a major vote of confidence in Mobileye's machine vision and autonomous vehicle technologies and could pave the way for major sales and earnings improvements. With the new Lyft report, some investors are betting that Mobileye's turnaround is starting to take shape.

What's next for Mobileye?

Mobileye's financial performance has been underwhelming lately. In the fourth quarter, the company's revenue fell 23% year over year to $490 million. Meanwhile, adjusted earnings per diluted share came in at $0.13 -- down 53% year over year.

On the heels of the soggy Q4 results, being selected as Lyft's key technology partner for its robotaxi project looks like a very bullish development for Mobileye. In addition to signaling the potential for a substantial new revenue stream, it also suggests that some concerns related to the competitiveness of the company's technologies may have been overblown.

Inclusion in Lyft's robotaxis has the potential to be a powerful long-term performance driver for Mobileye and could help power a sustained rebound for the stock. Even with today's explosive gains, the company's share price is down roughly 33% over the last year.