From Nasdaq:

Intel’s subsidiary, Mobileye Global Inc., expects a significant drop in net sales in the first quarter of fiscal 2024, and forecasts a 50% net sales drop for the year compared with fiscal 2023. Intel owns an 88% stake in Mobileye, and these projected declines are likely to impact the company’s top-line performance.

The drop in net sales is due to an excess inventory build-up at some of Mobileye’s tier 1 customers who are estimated to hold an excess of about 6-7 million units of EyeQ SoCs. This build-up is a strategic move to minimize the impact of part shortages during supply chain disruptions and is not an indication of falling demand for driver assistance technology among automakers.

Mobileye anticipates that revenues from the second to fourth quarters of 2024 will increase, but excess inventory levels are expected to drop significantly in the first quarter and normalize by the end of the year.

Intel’s recent acquisition of Mobileye has strengthened its position in the autonomous car technology market, and subsequently, the company has launched AI chips for data centers and PCs to gain a firmer footing in the AI sector.

NVIDIA Corporation and United States Cellular Corporation are other stocks to consider. NVIDIA, a leader in visual computing technologies, holds a Zacks Rank #2 (Buy) and delivered a trailing four-quarter average earnings surprise of 18.99%. US Cellular, a full-service wireless carrier, is currently sporting a Zacks Rank #1 and aims to offer the best wireless experience to customers.

Read more: Intel’s (INTC) Outlook Hurt by Mobileye’s Revenue Slowdown