Shares of Mobileye Global Inc. (MBLY) skyrocketed on Thursday, fueled by a strong statement from Intel Corp (INTC) assuring investors that it would not divest its majority stake in the Israeli autonomous driving company. The news triggered a 14.99% jump in Mobileye’s stock price, marking its largest intraday gain since late October 2022.
In a statement, Intel declared, “We currently do not have any plans to divest a majority interest in the company. By providing Mobileye with separation and autonomy, we have enhanced its ability to capitalize on growth opportunities and accelerate its path to creating even greater value.”
Intel, which holds an 88% stake in Mobileye, expressed unwavering faith in the future of autonomous driving technology and highlighted Mobileye’s “unique role as a leader” in developing advanced driver assistance systems. The company’s commitment to Mobileye comes amidst a period of significant changes within Intel under CEO Pat Gelsinger. Gelsinger has been actively restructuring the chipmaker’s operations, including pausing factory construction in Germany and Poland and transitioning its manufacturing sector into a wholly owned subsidiary.
Earlier this month, Bloomberg reported that Intel had been exploring potential options for selling some of its Mobileye stake, either through a public market offering or a third-party sale. However, Thursday’s statement effectively quashed these speculations, sending a clear signal of Intel’s confidence in Mobileye’s future success.
Mobileye, which provides both software and hardware for self-driving systems, was acquired by Intel in 2017 for approximately $15 billion. The company went public in 2022, with Intel retaining a controlling interest. The company’s recent revenue outlook may have been lowered, but certain analysts remain optimistic about Mobileye’s future prospects.
