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Mobileye Lowers Revenue Forecast, Shares Plummet

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  Published in Automotive and Transportation on Thursday, January 22nd 2026 at 8:01 GMT by Channel NewsAsia Singapore
      Locale: ISRAEL, UNITED STATES, JAPAN

Jerusalem, January 22nd, 2026 - Intel's autonomous driving division, Mobileye, is facing headwinds as it navigates the complex landscape of the advanced driver-assistance systems (ADAS) and self-driving technology market. In a move that sent ripples through the automotive tech sector, Mobileye revised its annual revenue forecast downwards, sparking a significant drop in its share price. This adjustment highlights the challenges inherent in bringing cutting-edge autonomous driving technology to the mass market and raises questions about the pace of innovation in the industry.

The company, initially projecting revenue between $2.2 billion and $2.5 billion for 2024, significantly missed analyst expectations of $2.73 billion, according to data from LSEG. This revised projection represents a considerable shift from Mobileye's earlier optimistic forecast, which anticipated a growth rate of 35% to 40% for the same period. While the company still anticipates revenue growth resuming in 2025, the expected pace is now considerably slower than initially projected.

What Caused the Shift?

Mobileye's CEO, Professor Amnon Shashua, attributed the lowered forecast to two primary factors: delays in the rollout of its crucial EyeQ Ultra system and a generally weaker macroeconomic environment impacting consumer spending and automotive production. The EyeQ Ultra is a critical component of Mobileye's ADAS and self-driving capabilities, acting as the 'brain' processing sensor data and making driving decisions. Delays in its integration and adoption directly impact revenue generation.

The macroeconomic headwinds are playing a significant role as well. Global economic uncertainty has led to cautious consumer behavior, potentially delaying vehicle purchases and impacting the adoption rate of technologically advanced features like ADAS. Automakers, sensitive to consumer demand, may also be scaling back production or delaying the introduction of new features, further exacerbating Mobileye's revenue challenges.

Focus on the Future: The Next-Generation SoC

Despite the current setbacks, Mobileye remains focused on its long-term vision. The company is actively concentrating its resources on a new system-on-a-chip (SoC) slated for release in 2025. This next-generation chip is expected to be a significant driver of future revenue growth, promising improved performance and expanded capabilities. Mobileye believes this new SoC, though not offering an immediate fix, will position the company for renewed success in the years to come. The move signifies a strategic pivot, prioritizing future innovation even as near-term expectations are tempered.

Impact on the Autonomous Driving Landscape

Mobileye's situation is a cautionary tale for the entire autonomous driving industry. While the potential for self-driving technology is undeniable, the path to widespread adoption is proving to be more complex and protracted than initially anticipated. Other companies in the space, including Waymo, Cruise, and Tesla, also face their own unique challenges related to regulatory hurdles, technological limitations, and public perception. Mobileye's revised forecast may prompt a reassessment of timelines and investment strategies across the sector.

Investor Reaction and Future Outlook

The initial market reaction to Mobileye's announcement was swift and negative. The company's shares experienced a decline of over 20% in after-hours trading, reflecting investor concerns about the company's near-term prospects. Analysts are now scrutinizing Mobileye's technology roadmap and financial projections to determine the long-term impact of these developments.

While the immediate forecast is subdued, Mobileye maintains confidence in its technology and long-term growth potential. The company's focus on the 2025 SoC and its commitment to innovation suggest that Mobileye is actively working to overcome current challenges and regain momentum in the autonomous driving race. The coming months will be crucial as Mobileye strives to execute its strategy and regain investor confidence.