Self-driving technology company Mobileye Global (NASDAQ:MBLY) saw its shares tail off sharply Thursday, after warning that a pullback in orders from customers clearing excess inventory will batter its revenue this year, sparking a selloff in the shares of auto chip suppliers.
Shares of the Israel-based company, whose customers include Volkswagen and Porsche, lost $8.98, or 22.6%, to $30.74.
Mobileye forecast preliminary 2024 revenue below estimates showing that the automotive chip industry, which had so far avoided the chip supply glut crisis, will likely face a downturn too.
“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 said.
The company expects revenue in the first quarter of the year to fall about 50% from a year earlier.
Estimating an excess supply of six million to seven million units of its EyeQ advanced driver-assistance chips at its customers, Mobileye said it expects first-quarter profit to be “significantly below the subsequent quarters”.
Mobileye forecast 2024 revenue between $1.83 billion and $1.96 billion, compared with estimates of $2.58 billion, according to LSEG data.
