This Investor Says Mobileye Isn't What Will Drive Intel Shares To $90: Here's What Will

Intel Corp INTC is trading higher Tuesday after the company announced intentions to take its self-driving car unit, Mobileye, public.

Gilman Hill Asset Management's Jenny Harrington thinks Intel still presents a solid investment opportunity without Mobileye.

"When we bought Intel, Mobileye was a cog in the wheel of the investment thesis. It wasn't the bulk of it," Harrington said Tuesday on CNBC's "Fast Money Halftime Report."

See Also: Why Intel Is Seeing A Gap Up Tuesday

The main part of the investment thesis for Intel was the company's consistent free-cash-flow generation and discounted valuation, according to Harrington: "I could make an argument that excludes Mobileye and I would still want to own Intel," she said.

Harrington thinks Intel can reach earnings of $6.50 per share in the next few years, excluding Mobileye. The company is currently on pace to earn about $5 per share this year.

If the company is able to reach said earnings, at a 15 times earnings multiple, it would be trading higher than $90 per share, she said.

Intel is set to remain the majority owner of Mobileye. The companies will remain strategic partners, collaborating on projects as they pursue the growth of computing in the automotive sector.

Mobileye is focused on driver-assistance and autonomous driving solutions. The company expects 40% revenue growth for 2021. Intel designs and manufactures microprocessors for the global personal computer and data center markets.

INTC Price Action: Intel has traded as high as $68.49 and as low as $45.24 over a 52-week period.

The stock was up 4.34% at $53.21 Tuesday afternoon.

Photo: courtesy of Intel.