Intel Corporation To Sell $1.5 Billion Stake In Mobileye Global Inc

Intel Corporation has revealed its plan to sell a significant stake in Mobileye Global Inc, a prominent self-driving technology company. The sale, valued at approximately $1.5 billion, marks an important move for Intel as it adjusts its investment portfolio and aligns its strategic focus.

Intel filed a regulatory document on Monday, stating that it plans to offer 35 million shares of Class A common stock in Mobileye Global Inc, amounting to approximately a $1.5 billion stake. As a result of this offering, Intel's ownership stake in the self-driving technology company is anticipated to decrease from its current level of 99.3% to approximately 98.7%.

Consequently, Mobileye's shares, headquartered in Jerusalem, Israel, experienced a decline of over 4% in after-hours trading, settling at $40.55.

The share sale comes as the company faces heavy rivalry in the assisted driving sector from chipmakers Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O), both of which are attempting to make inroads.

Mobileye, which has customers such as BMW (BMWG.DE), Nissan (7201.T), and Volkswagen (VOWG_p.DE), was listed on the Nasdaq last year after generating $861 million in an initial public offering.

According to the firm, Goldman Sachs & Co. and Morgan Stanley are serving as joint book-running managers for the share offering.