Intel Eyes Mobileye Stake Sale Amid Pressure, Stock Slides
Mobileye Global Inc (NASDAQ:MBLY) stock is trading lower Friday amid reports that Intel Corp (NASDAQ:INTC) is eying a strategic stake sale of the Israeli autonomous driving company.
Intel could sell up to 88% of its stake in Mobileye, Bloomberg cites familiar sources. The company will decide this at Mobileye’s September board meeting in New York.
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Mobileye Global stock plunged over 65% in the last 12 months. The company grappled with lower auto production as post-pandemic oversupply plagued the industry.
In August, Mobileye slashed revenue and adjusted operating income forecasts after posting a 3% topline decline in the second quarter. The company also flagged impending challenges in the second half of 2024 due to China’s weak demand.
Intel, whose stock value has dropped 48% in the last 12 months, is separately exploring options for its enterprise networking division, Bloomberg cites familiar sources.
The Network and Edge business revenue plunged by a third last year to $5.8 billion. The segment revenue declined by 1% to $1.3 billion in the current quarter.
The chipmaker failed to capitalize on the artificial intelligence boom, and its contract manufacturing unit lost out to Taiwan Semiconductor Manufacturing Co (NYSE:TSM).
Intel is currently discussing with 12 potential clients regarding options to drive revenue from its contract chip business by 2027.
Price Actions: MBLY stock is down 4.91% at $12.00 premarket at the last check Friday. INTC stock is up by 0.26% at $19.45.
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