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Mobileye: Damaged Goods

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  • Mobileye Global warns of inventory issues and expects 2024 guidance to fall far short due to excess supplies caused by double EyeQ ordering during Covid.
  • The ADAS chip company guided to 2024 revenues of only $1.9 billion suggesting a bigger problem than the 6 to 7 million excess chip inventory at Tier 1 customers.
  • MBLY stock still trades at an elevated 12x 2024 sales targets despite the 25% dip.
Since going public via the spin-off from Intel Corporation (INTC) in late 2022, Mobileye Global Inc. (NASDAQ:MBLY) has constantly traded at a premium valuation. The ADAS chip company just announced a massive warning due to inventory issues at the end of 2023. My investment thesis remains Bearish on the stock even after the nearly 25% loss in early trading today, January 4th.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please read the disclaimer page for more details. 

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