"Mobileye's Stock Tumbles Amid Diminished Revenue Outlook and Supply Concerns"

Mobileye Global Inc.'s stock plummeted by as much as 29% after the company's full-year revenue forecast for 2024 came in significantly lower than analysts' expectations, projecting between $1.83 billion and $1.96 billion versus the anticipated $2.58 billion. The company attributes the lower forecast to customers having excess ADAS chip inventory post-pandemic, which they expect to be utilized in the first quarter. The news affected not only Mobileye but also Intel Corp., which holds an 88% stake in the company. The chip industry is facing challenges with oversupply and reduced demand, leading to inventory gluts and price drops. Mobileye's disappointing outlook has led to downgrades from analysts and concerns over the timing of revenue growth.