It was a mixed finish for stocks Thursday as investors took in the latest jobs data. While financials outperformed, tech shares lagged as ugly guidance from Mobileye Global (MBLY) sent shockwaves across the semiconductor industry.
Mobileye shares plummeted 24.6% Thursday after the company, which makes processors for self-driving cars, said it expects first-quarter revenue to fall 50% year-over-year due to “excess inventory at our customers” to the tune of 6.7 million chips. Analysts had been expecting MBLY to report top-line growth of 12.6% in Q1.
According to Mobileye, customers built up inventory levels following “supply chain constraints in 2021 and 2022” and amid “a desire to avoid part shortages.” It expects the issue to resolve itself in the first quarter.
