Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc. (Nasdaq: MBLY) saw its share price jump 11.42% on Wall Street yesterday to $27.81, giving a market cap of $22.421 billion. The share price is up a further 1.08% in premarket trading.
The sharp rise comes after Mobileye reported that sales of the company’s flagship EyeQ vision technology used by vehicle manufacturers for autonomous driving and driver-assistance needs, will reach around 3.4 million units in the first quarter of 2024. More significantly, Mobileye, led by CEO Amnon Shashua, forecasts that this number will double in the second quarter.
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In early January 2024, Mobileye’s share price tumbled 25% after the company said that it expects revenue to be down 50% in the first quarter of 2024 to $229 million from $458 million in the first quarter of 2023. Mobileye attributed the lower revenue expectation to “excess inventory at our customers” who overstocked due to supply chain concerns.
The expected doubling of EyeQ sales in the second quarter suggests that Mobileye is well on the road to recovery.
Published by Globes, Israel business news – en.globes.co.il – on March 7, 2024.
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