Mobileye Global Inc MBLY stock is trading lower Friday amid reports that Intel Corp INTC is eying a strategic stake sale of the Israeli autonomous driving company.
Intel could sell up to 88% of its stake in Mobileye, Bloomberg cites familiar sources. The company will decide this at Mobileye’s September board meeting in New York.
Also Read: Intel’s Place In Dow In Jeopardy, AI Strategy Under Scrutiny: Report
Mobileye Global stock plunged over 65% in the last 12 months. The company grappled with lower auto production as post-pandemic oversupply plagued the industry.
In August, Mobileye slashed revenue and adjusted operating income forecasts after posting a 3% topline decline in the second quarter. The company also flagged impending challenges in the second half of 2024 due to China’s weak demand.
Intel, whose stock value has dropped 48% in the last 12 months, is separately exploring options for its enterprise networking division, Bloomberg cites familiar sources.
The Network and Edge business revenue plunged by a third last year to $5.8 billion. The segment revenue declined by 1% to $1.3 billion in the current quarter.
The chipmaker failed to capitalize on the artificial intelligence boom, and its contract manufacturing unit lost out to Taiwan Semiconductor Manufacturing Co TSM.
Intel is currently discussing with 12 potential clients regarding options to drive revenue from its contract chip business by 2027.
Price Actions: MBLY stock is down 4.91% at $12.00 premarket at the last check Friday. INTC stock is up by 0.26% at $19.45.
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