Intel Slashes Valuation Of Mobileye IPO As Chipmakers Cut Outlook Citing Uncertain Macro Environment

Intel Corp INTC scaled back expectations for its Mobileye initial public offering amid a broader stock recession and could delay the share sale until 2023 from the prior mid of 2022, pending recovery, Bloomberg reports.
Intel expects the IPO to value the self-driving technology business at up to $30 billion, down from an initial valuation of over $50 billion.
CEO Pat Gelsinger aimed to capitalize on the Israel-based business with a partial spinoff of its shares.
Mobileye makes chips for cameras and drive-assistance features and is considered a prized asset as the car industry races toward fully automated vehicles.
Mobileye clocked a 41% sales growth to $460 million in Q2. The operating income rose 43% to $190 million.
However, Intel's struggle against a bear market for chip stocks and a dearth of IPOs, made it harder to complete the deal.
In China, Softbank Group Corp SFTBY aspired for chip designer Arm Ltd's unusual dual primary listing in New York and London, despite the higher costs and regulatory complexities of different exchanges.
Seagate Technology Holdings PLC STX slashed its outlook for the fiscal first quarter ending September 30, 2022, against a worsening macro backdrop.
Micron Technology, Inc MU also expected Q4 revenue to miss the revenue guidance range.
Peer Nvidia Corp NVDA offered cautious third-quarter revenue as gaming and professional visualization revenue declined.
Price Action: INTC shares traded higher by 0.70% at $31.78 in the premarket on the last check Tuesday.
Mobileye autonomous shuttle photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga