Intel Reaffirms Commitment to Mobileye, Boosting Shares

Mobileye shares jump as Intel confirms no plans to divest majority stake - SiliconANGLE

Mobileye shares jump as Intel confirms no plans to divest majority stake Shares in automotive chip maker Mobileye Global Inc. were up nearly 15% in regular trading today after its majority shareholder, Intel Corp., said that it has no plans to divest its interest in the company. Reports earlier this month suggested that Intel was considering offloading its approximately 88% stake in the company via public markets or directly to a third party. It was claimed that Intel planned to do so as part of plans to cut operating costs by $10 billion next year, combined with Mobileye delivering a disappointing earnings report in its most recent quarter. Intel cut straight to the point in a statement, saying that "we currently do not have any plans to divest a majority interest in the company" and that it has an "unwavering focus on value creation and are excited about the future of its business." Mobileye was acquired by Intel for $15.3 billion in March 2017 before being partially floated in an initial public offering at $21 per share in October 2022. The company stock hit highs of around $44 per share but dropped as low as $10.48 per share over the last six months. As of yesterday's close of trading, Mobileye shares were sitting at $11.72. Mobileye develops technology that powers camera systems used by autonomous and semi-autonomous vehicles. The company offers technology that includes artificial intelligence and deep learning to create hardware and software for use by automakers. The company's clients include BMW AG, Audi AG, Volkswagen AG, Nissan Motor Co. Ltd., Honda Motor Co. Ltd. and General Motors Co. As of its second quarter, the company had an adjusted net income of $76 million on revenue of $439 million, with sales declining 3% year-over-year. While the top line figures could have been better, Intel noted in its statement that "we believe in the future of autonomous driving technology and in Mobileye's unique role as a leader in the development and deployment of advanced driver assistance systems." Intel's public confirmation of support for Mobileye has been well received, with Bloomberg Intelligence analyst Jake Silverman noting that "Intel's decision to maintain majority ownership of Mobileye removes a near-term overhang that may have lingered given Intel's difficult financial position."

Intel Says No Plans to Divest Majority Stake in Mobileye

Intel Corporation (NasdaqGS:INTC) announced on September 19, 2024, it had no plans to sell its majority stake in Mobileye Global Inc. (NasdaqGS:MBLY) sending shares of the self-driving tech firm up more than 13%. Mobileye shares, which have dropped 73% this year, took a beating earlier in the month after Bloomberg News reported that Intel was looking to sell a portion of its stake in the company. ?We believe in the future of autonomous driving technology and in Mobileye's unique role as a leader in the development and deployment of advanced driver assistance systems,? Intel said in a statement. As of December 30, Intel owned about 88.3% of Mobileye's common stock, according to the Israeli company's annual report. Intel also has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors, but its shares have plummeted in recent months as it cut jobs, suspended its dividend and faced a high-profile board member resignation.

What's Going On With Autonomous Driving Stock Mobileye Thursday? - Intel (NASDAQ:INTC)

Mobileye faces challenges with weak China demand and lowered 2024 revenue guidance, but stock is up 7.67% premarket. Mobileye Global Inc MBLY stock was trading higher Thursday after Intel Corp INTC said it does not plan to divest its majority interest in the company. U.S. Fed rate cut also had a bearing on the stock price movement. Intel made the statement after winning a multi-year, multi-billion-dollar U.S. chipmaking deal from existing customer Amazon.com Inc AMZN cloud unit and U.S. semiconductor grant. Intel also won up to $3 billion in CHIPS and Science Act funding, in addition to the $8.5 billion in grants and $11 billion in loans the struggling chipmaker previously won under the act. Also Read: Intel Missed Out on PlayStation 6 Chip Deal to AMD: Report Intel stock is down 43% in the last 12 months as its foundry unit failed to capitalize on the AI shift. Prior reports indicated Intel's plans to divest up to 88% of its stake in the Israeli autonomous driving company. Mobileye Global stock is down 70% in the last 12 months as it slashed revenue guidance after posting a topline decline in the second quarter. The company also flagged impending challenges due to China's weak demand. It expects fiscal 2024 revenue of $1.60 billion-$1.68 billion below the $1.87 billion analyst estimate. Price Action: MBLY stock is up 14.4% at $13.28 at last check Thursday. Also Read: Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance Photo courtesy of Mobileye. Market News and Data brought to you by Benzinga APIs