Mobileye predicts sharp revenue decline in 2024, chip oversupply

Mobileye recently released a surprising forecast about its EyeQ advanced driver assistance chip, saying that the chip is in oversupply and has an inventory of 6 million to 7 million chips. This phenomenon is mainly due to global supply chain problems. Automakers have stockpiled a large number of Mobileye chips to avoid parts shortages, resulting in the need to digest inventory this quarter. Revenue is expected to drop sharply by 50% in the first quarter of 2024, and customer orders may decrease due to high inventory. Mobileye will rely mainly on the SuperVision business, but the overall automotive chip market may face challenges due to slowing car demand and weak growth in electric vehicles.