Mobileye Warns of Dramatic Drop in Q1 2024 Orders, Shares Plunge

Excess inventory due to eased supply chain concerns expected to cause decrease in new chip orders.

Mobileye, the self-driving technology company majority owned by Intel, warned that it expected customer orders to drop off dramatically for the first quarter of 2024, causing shares to plunge as much as 25%.
Mobileye has become aware of excess inventory at its customers, who had stocked up on Mobileye's chips in the aftermath of global supply chain issues.
As supply chain concerns have eased, Mobileye expects its customers to use the vast majority of this excess inventory in the first quarter of the year, leading to a decrease in new orders.
Intel first announced it would take Mobileye private in 2017 for more than $15 billion, then took the company public again in October 2022, and sold off $1.5 billion worth of its Mobileye stake last year, but retains an 88% stake in the company.
Despite the announcement and subsequent stock plunge, IPO buyers of Mobileye still remain up around 12%.