(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 around 6% 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.
However, uncertainty persists in the wider industry, as rising manufacturing costs for automakers could lead to short-term production cuts and affect demand for advanced driving technology provided by Mobileye, analysts have noted.
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)
