Increased demand for AI chips (driven by factors like TSMC's record profits) positively impacts Arbe Robotics, as its 4D imaging radar solutions are integral to advanced driver-assistance systems and autonomous vehicles, which rely heavily on AI and advanced computing.

Global economic challenges, as addressed by the IMF and World Bank, could impact the automotive industry's overall production and consumer spending on new vehicles. This uncertainty may affect the adoption rate of advanced technologies like Arbe's radar systems, although the company is strategically expanding into non-automotive sectors like defense to mitigate such risks.

Escalating Middle East conflicts and surging oil prices could lead to higher manufacturing and transportation costs for the automotive industry. These increased operational expenses might reduce the budgets available for investment in new technologies or slow down the commercialization of autonomous driving features, potentially affecting Arbe's growth trajectory.