Intel said it has no plans to sell a controlling stake in computer vision and autonomous driving systems developer Mobileye Global. As a result, the securities of the autopilot technology developer increased in price by more than 13%.
Image Source: Mobileye.com
Mobileye shares crashed in early September after Bloomberg reported that Intel was planning to sell part of its stake in the company. In total, securities have lost 73% since the beginning of the year. “We believe in the future of autonomous driving technology and in Mobileye’s unique role as a leader in the development and deployment of advanced driver assistance systems,” Intel said in a statement.
Intel acquired Mobileye in 2017 for $15.3 billion, but five years later re-listed the company’s shares on the stock exchange. As of Dec. 30, Intel owned 88.3% of Mobileye’s common stock, the Israeli autopilot developer said in its annual report. It now has to contend with volatile demand for chips for driver assistance systems; Due to weak sales in China, the company was forced to lower its annual revenue and profit forecasts.
Intel itself has been trying to turn around its business by focusing on chips and processors for artificial intelligence systems, but its shares have fallen sharply in recent months as the company cut jobs, suspended dividends and suffered the resignation of a senior board member. The situation could be improved by a deal with Amazon’s cloud division, which was announced earlier – it will help gain momentum for Intel’s manufacturing enterprise, which aims to become a full-fledged competitor in the market for semiconductor contractors, including TSMC.