FILE PHOTO: Mobileye logo is seen in this illustration taken February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Self-driving technology firm Mobileye Global raised its forecast for fiscal 2025 revenue on Thursday, anticipating a rise in orders for its autonomous driving chips as customers clear existing inventory.
Shares of the company rose over 4% in premarket trading.
Automakers have largely resumed placing orders for self-driving hardware after an inventory surplus — caused by COVID-19-related supply concerns some years ago — led to a prolonged slump in demand.
"Stronger visibility on industry supply-demand alignment since late-April supports our decision to raise the full-year outlook, while we continue to maintain a conservative stance given the broader macro environment," said Mobileye CEO Amnon Shashua.
He adds that Mobileye will see an inflection point in 2027, as upcoming driver assistance products are expected to give a boost to revenue growth.
U.S. government tariff announcements on vehicles and parts earlier this year shook the automotive industry, leading automakers, including some Mobileye customers — such as Porsche and Audi — to adjust supply chains and mitigate business impacts.
In April, Mobileye had said that it would be relatively insulated from the tariffs, since its customers are the importers of its driver-assistance chips.
"While tariffs remain in place, the actual impact on production and consumer demand appears rather limited," Mobileye executives said on a post-earnings conference.
Company executives also said there are no indications from customers that fourth-quarter shipment volumes will weaken, easing concerns about a potential slowdown in demand for vehicles equipped with Mobileye technology despite the threat of higher manufacturing costs due to auto tariffs.
Mobileye now expects annual revenue between $1.77 billion and $1.89 billion, compared with its previous forecast of $1.69 billion to $1.81 billion.
The company reported revenue of $506 million in the second quarter, beating estimates of $480.9 million, according to data compiled by LSEG.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)
