From StockStory:

1. Chip designer Allegro MicroSystems (NASDAQ:ALGM) saw its shares drop 9.8% in response to lower-than-expected preliminary financial guidance by auto-chip maker Mobileye for Q4’2023 and FY 2024, signaling potential challenges for semiconductor stocks in the near term.

2. Mobileye cited “excess inventory” among its Tier 1 customers as the cause for the weak outlook, and anticipates lower volume in its EyeQ® SoC business and a temporary hit to profitability in Q1 2024.

3. Allegro MicroSystems’s shares are volatile, and today’s move is seen as significant but not fundamentally changing its perception.

4. Allegro MicroSystems stock is currently 48.7% below its 52-week high from July 2023.



Read more: Why Allegro MicroSystems (ALGM) Stock Is Falling Today