Intel offloads $900 million in Mobileye shares to ease cash crunch
Sale marks Intel’s latest move to raise cash amid weak returns and delayed autonomous ambitions.
Mobileye announced on Tuesday, after the close of trading, that Intel will sell shares in the company worth $900 million. The crisis-hit chip giant plans to sell 45 million shares, with Mobileye’s share price currently hovering around $19. The underwriters of the offering, Goldman Sachs and Bank of America, have the option to sell an additional 6.5 million shares of Mobileye.
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Since the beginning of the year, Mobileye has posted a negative return of 7% and continues to trade below its IPO price, with a current market capitalization of about $15 billion. Mobileye will also repurchase $100 million worth of shares directly from Intel. Combined with this buyback, the total proceeds for Intel could reach $1 billion. After the sale, Intel’s stake in Mobileye will drop below 80%. For Mobileye, this development is seen as positive, as it releases more shares to the public market and is expected to increase the stock’s liquidity.
In fact, Mobileye is now trading at roughly the same valuation as when Intel acquired it in 2017. Since then, the dream of fully autonomous vehicles has been delayed, and the Israeli company’s operations turned out to offer little synergy for Intel. As a result, Intel re-listed Mobileye on Wall Street in 2022. Even then, expectations fell short: Intel initially hoped to float Amnon Shashua’s company at a $50 billion valuation, but reality forced it to settle for just $17 billion. Against this backdrop, Intel kept most of its shares and, as of the end of 2024, still held 88% of the company. However, Intel’s worsening crisis, combined with Mobileye’s stagnant share performance, has now led to this significant divestment.
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Alongside the offering announcement, Mobileye updated its outlook for the second quarter, which ended in June. The company expects to report revenue of $502–$506 million, reflecting 15% growth year-over-year. The operating loss is projected to range between $76 million and $82 million, compared to a loss of $94 million in the second quarter of 2024. These results are relatively strong and could help Mobileye distance itself from the disappointing full-year revenue forecast of $1.7–$1.8 billion it provided for 2025.
