Mobileye Global Shares Drop

Investing.com — Shares of Mobileye Global (NASDAQ:MBLY) Inc. fell in pre-open trade on Friday after Bloomberg reported that Intel Corp (NASDAQ:INTC) might be looking to offload part of its stake in the company.

Intel is reportedly exploring options to sell some of its 88% ownership in Mobileye either through public markets or to a third party, according to Bloomberg sources.

The Jerusalem-based company, which specializes in self-driving technology, went public in the US in 2022.

Intel had previously sold a portion of its stake last year, raising approximately $1.5 billion. However, Mobileye has faced significant challenges lately, with its stock dropping about 71% this year, bringing its market value to around $10.2 billion.

The decline is attributed to automakers reducing production amid a post-pandemic supply glut across the industry. Last month, Mobileye slashed its revenue forecasts and adjusted its operating income expectations well below analyst projections.

Intel’s consideration of selling its Mobileye stake is part of a broader strategic overhaul, which also includes evaluating options for its Network and Edge division. This division, which manufactures chips for networking and telecommunications, saw revenues plummet by almost a third to about $5.8 billion last year.

These initiatives are part of CEO Pat Gelsinger’s plan to restore Intel’s leadership in the semiconductor industry. Analysts are predicting further losses for Intel, which recently reported a net loss of $1.61 billion last quarter. The company’s board will review various strategic options later this month.

Shares of Mobileye Global decreased by 3.7% in pre-open trade on Friday.