Mobileye Global Inc's stock is experiencing a decline on Friday following reports that Intel Corp is considering a strategic sale of its stake in the Israeli autonomous driving firm.
According to sources cited by Bloomberg, Intel may divest up
to 88% of its holdings in Mobileye, with a decision expected during the
company's board meeting in New York this September.
Over the past year, Mobileye Global's stock has plummeted by
more than 65%, largely due to reduced automobile production as the industry
continues to deal with post-pandemic oversupply issues.
In August, Mobileye revised its revenue and operating income
projections downward after reporting a 3% decrease in revenue for the second
quarter.
The company also indicated potential difficulties in the
latter half of 2024, attributing this to weak demand from China.
Meanwhile, Intel's stock has fallen by 48% over the past
year and is also exploring options for its enterprise networking division, as
reported by Bloomberg.
The revenue from the Network and Edge business dropped by a
third last year to $5.8 billion, with a 1% decline to $1.3 billion in the
current quarter.
The chipmaker has struggled to take advantage of the
artificial intelligence surge and has lost ground to Taiwan Semiconductor
Manufacturing Co.
Intel is currently in discussions with 12 potential clients
to explore ways to enhance revenue from its contract chip business by 2027.
In terms of price movements, MBLY stock is down 4.91% at
$12.00 in premarket trading, while INTC stock has risen by 0.26% to $19.45.