Mobileye Soars After Intel Says It Will Not Sell Majority Stake

Intel's Surprise Announcement

Mobileye, an Israeli company that develops self-driving car technology, saw its stock price surge by more than 10% after Intel announced that it would not sell its majority stake in the company. This announcement came as a surprise to many investors, as it had been widely expected that Intel would sell Mobileye in order to raise cash and focus on its core businesses.

Strong Financial Performance

Mobileye's strong financial performance has likely played a role in Intel's decision to retain its stake in the company. In the first quarter of 2023, Mobileye reported revenue of $450 million, a 40% increase year-over-year. The company also reported a profit of $110 million, compared to a loss of $15 million in the same period last year.

Positive Outlook

Analysts are positive about Mobileye's future prospects. Many believe that the company is well-positioned to benefit from the growing demand for self-driving car technology. Mobileye has a number of partnerships with major automakers, including BMW, Volkswagen, and Nissan. These partnerships are expected to help Mobileye increase its market share in the years to come.

Benefits for Intel

Retaining its stake in Mobileye could also benefit Intel in several ways. First, it gives Intel access to Mobileye's technology, which could be used to develop new self-driving car products. Second, it allows Intel to participate in the growth of the self-driving car market. Third, it strengthens Intel's relationship with Mobileye, which is a leading player in the autonomous driving industry.

Conclusion

Intel's decision not to sell Mobileye is a sign of confidence in the company's future prospects. Mobileye is a leader in the development of self-driving car technology, and its strong financial performance and positive outlook make it an attractive investment for Intel. Retaining its stake in Mobileye could benefit Intel in several ways, including giving it access to Mobileye's technology, allowing it to participate in the growth of the self-driving car market, and strengthening its relationship with Mobileye.