Intel’s Strategic Move
Mobileye Global Inc’s stock saw a surge in trading on Thursday following Intel Corp’s announcement that it intends to maintain its majority interest in the company. This decision by Intel comes in the wake of a U.S. Federal Reserve rate cut that also influenced the stock’s movement.
Intel’s Recent Wins
Intel’s declaration coincided with its successful bid for a lucrative multi-year, multi-billion-dollar chipmaking deal from its long-standing client, Amazon.com Inc’s cloud division. Additionally, Intel secured up to $3 billion in funding under the CHIPS and Science Act on top of the $8.5 billion in grants and $11 billion in loans previously acquired under the same act.
Challenges for Intel
Despite these victories, Intel has faced challenges, with its stock plummeting by 43% over the past year due to the failure of its foundry unit to capitalize on the AI trend.
Mobileye Global Inc’s Struggles
In contrast, Mobileye Global Inc’s stock has witnessed a sharp decline of 70% in the last year, triggered by a revenue guidance reduction after reporting a decline in its second-quarter revenue. The company flagged future obstacles, citing weaker demand in China and projecting fiscal 2024 revenues between $1.60 billion and $1.68 billion, falling short of the analyst estimate of $1.87 billion.
Stock Performance
Despite the challenges, Mobileye Global Inc’s stock exhibited a 14.4% increase, trading at $13.28 at the latest check on Thursday.