Mobileye shares plummet 25% due to a drop in orders for chips for robot cars
Mobileye
Autonomous driving technology company Mobileye, majority owned by Intel, has warned of a significant drop in demand for its products in the first quarter of 2024.
Here's What We Know
According to Mobileye, automakers have stockpiled a large inventory of the company's chips, fearing component shortages due to supply issues.
"As supply chain concerns have eased, we expect that our customers will use the vast majority of this excess inventory in the first quarter of the year" Mobileye stated.
Therefore, the company does not expect customers to place orders for new chips in the same volume as in the first quarter of last year
The company's shares fell 25 per cent on the back of the announcement.
Flashback
Intel acquired Mobileye in 2017 for more than $15 billion. The company went public again in October 2022.
Last year, Intel sold its stake in Mobileye for $1.5 billion, but retained an 88% stake in the company.
Despite the current drop, Mobileye's stock is still trading about 12% above its IPO price.
Go Deeper:
- Intel brought Mobileye to IPO and raised $861 million for 5% stake, retaining all Class B shares
- Mobileye has taught artificial intelligence to read road signs to adjust car speeds
Source: CNBC
