Mobileye: Intel rules out selling its stake, stock soars

(CercleFinance.com) - Intel ruled out any sale of its majority stake in Mobileye on Thursday, sending the stock of its autonomous driving subsidiary soaring by more than 15% on Wall Street.


In a brief statement, the chipmaker said it was enthusiastic about the prospects of the Israel-based entity, and its ability to position itself as a leader in driver assistance systems (ADAS).

By demerging Mobileye and giving it autonomy, we have strengthened its ability to capitalize on growth opportunities and accelerate its trajectory to create even more value", recalls Intel.

Following this announcement, Mobileye shares rebounded by more than 15% on Thursday on the Nasdaq, after having fallen by more than 56% over the last two months amid speculation about the future of Intel's majority stake, which is currently undergoing a strategic review aimed at improving its profitability.

Intel shares gained around 2.7%.

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