Mobileye Global Inc (MBLY) stock witnessed a surge on Thursday, fueled by positive developments from both Intel and the Federal Reserve. The rally began after Intel Corp (INTC) announced its intention to retain its majority stake in Mobileye, defying earlier reports suggesting a potential divestment.
This news came on the heels of Intel’s recent success in securing a multi-year, multi-billion-dollar chipmaking deal with Amazon’s cloud unit. This, coupled with the company’s receipt of up to $3 billion in funding under the CHIPS and Science Act, has boosted investor confidence in Intel’s future prospects.
Further fueling the stock’s rise was the U.S. Federal Reserve’s decision to cut interest rates. This move, aimed at stimulating economic growth, has generally been seen as positive for the stock market.
The recent positive developments for Mobileye stand in stark contrast to the company’s struggles in recent months. Mobileye’s stock has plummeted by 70% over the past year due to a combination of factors, including a revenue guidance cut following a decline in the second quarter and concerns over weak demand in China.
Despite these challenges, Intel’s decision to retain its majority stake in Mobileye has signaled its confidence in the company’s long-term potential. Investors appear optimistic about the future of Mobileye, as evidenced by the stock’s significant jump on Thursday.
