Monday, March 4, 2024
HomeBreaking NewsWhy Mobileye Crashed and Burned Today

Why Mobileye Crashed and Burned Today

2024-01-04 15:32:11 ET

Shares of autonomous driving solutions provider Mobileye (NASDAQ: MBLY) plunged 25.6% in Thursday trading, as of 3:20 p.m. ET.

The company, which is 88% owned by Intel (NASDAQ: INTC) but also has publicly traded shares on the Nasdaq, issued a press release this morning, saying that 2024 could be a very tough year.

The semiconductor sector is notoriously cyclical and follows a pattern that seems to repeat itself no matter how experienced these chip companies become. First, there are shortages, either due to high demand or supply constraints, as which happened to the auto industry during 2021-2022. In those periods, customers tend to over-order, because they don’t know if product will be available when needed. However, what inevitably happens is that when supply constraints ease and/or demand comes down (or both), chip customers (in this case, automakers) stop their orders, and a demand “air pocket” forms.

Continue reading

For further details see:

Why Mobileye Crashed and Burned Today


Disclaimer

This article is for the purposes of solicitation subscriptions for this website. This website expects to generate new advertisement revenue resulting from the distribution of this article. The amount of which is unknown at this time. This website or it’s authors do not own any shares of Mobileye N.V. (MBLY) and does not buy, sell, or trade any shares of (MBLY). This article does not provide a professional analysis of a (MBLY) financial position. (MBLY) financial position and all other information regarding the featured Company should be verified directly with (MBLY). Please read our full disclaimer for more detailed information.

Most Popular

Advertisement

Subscribe to our Stock News Alerts

Mobile is not required however if you want the fastest
delivery be sure to add your mobile.

Subscribe to our News Alerts
Loading