Mobileye, the self-driving expertise firm majority owned by Intel, warned on Thursday that it anticipated that buyer orders would drop off dramatically for the primary quarter of 2024.

Shares plunged as a lot as 25% on the information throughout Thursday morning buying and selling.

“We now have develop into conscious of extra stock at our clients,” Mobileye mentioned in a preliminary full-year outlook.

Automakers stocked up on Mobileye’s chips within the aftermath of world provide chain points that hampered manufacturing, searching for to keep away from future half shortages, the corporate mentioned.

“As provide chain issues have eased, we count on that our clients will use the overwhelming majority of this extra stock within the first quarter of the 12 months,” Mobileye mentioned in its outlook. Meaning clients is not going to be inserting orders for brand new chips on the similar degree as they did within the year-ago quarter.

Intel first introduced it could take Mobileye non-public in 2017 for greater than $15 billion, then took the corporate public once more in October 2022.

Intel offered off $1.5 billion price of its Mobileye stake final 12 months, however retains an 88% stake within the firm.

Till not too long ago, Mobileye’s inventory traded effectively above its preliminary public providing worth. The announcement Thursday has trimmed again a few of these good points, however IPO patrons nonetheless stay up round 12%.

WATCH: Mobileye CEO on China and international progress

Do not miss these tales from CNBC PRO:

• These shares would be the largest S&P 500 winners of 2024, in accordance with analysts
• This is the place to take a position $50,000 within the new 12 months, in accordance with the professionals
• Might a bitcoin ETF approval be a sell-the-news occasion? This is what to anticipate if it occurs
• These shares would be the largest Dow winners of 2024, in accordance with analysts
• Oprah’s flip on weight reduction medication is an indication of what is to return for the ‘Ozempic commerce’ in 2024