Sept 19 (Askume) – Intel Corp (INTC.O) said on Thursday it has no plans to sell its majority stake in Mobileye Global (MBLY.O) , sending shares of the self-driving technology company up more than 13%.
Mobileye’s shares have fallen 73% this year and dropped even further after Bloomberg News reported earlier this month that Intel was considering selling some of its stake in the company.
“We believe in the future of autonomous driving technology and Mobileye’s unique role as a leader in the development and deployment of advanced driver assistance systems,” Intel said in a statement.
Intel acquired Mobily in 2017 for $15.3 billion but relisted it via an IPO five years later .
Intel owned about 88.3% of Mobileye’s common stock as of Dec. 30, according to the Israeli company’s annual report.
Mobileye’s driver-assistance chips are facing fluctuations in demand.The company in August cut its annual revenue and profit forecasts due to weakness in the Chinese market .
Intel has also been trying to turn around its business by focusing on its chip foundry unit and artificial intelligence processors, but its stock price has fallen sharply in recent months due to layoffs , suspension of dividends and resignations of top executives.
However, a chip manufacturing deal with Amazon’s (AMZN.O) cloud unit announced on Monday could bring some leverage to Intel’s manufacturing operations as it seeks to compete with Taiwan Semiconductor Manufacturing Co. (2330.TW) .
