The Rollercoaster Ride of Mobileye Global Inc: A Look at Intel’s Decision to Hold Onto Their Majority Stake

By: Alex Freidmen

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.

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