Intel has announced plans to sell US$900 million worth of shares in its subsidiary, Mobileye, according to a statement released on July 8, 2o25 after market close.

The chipmaker will sell 45 million shares at an about price of US$19 per share, with Goldman Sachs and Bank of America as underwriters having the option to sell an additional 6.5 million shares.

Mobileye will repurchase US$100 million worth of shares from Intel, potentially raising Intel’s total proceeds to US$1 billion.

Following this sale, Intel’s stake in Mobileye will drop below 80%.

Mobileye, which develops advanced driver-assistance systems, has experienced a decline in market value since its 2022 re-listing on Wall Street, with shares underperforming and its current market cap at about US$15 billion.

Mobileye expects Q2 2025 revenue to grow 15% year-over-year, while narrowing its operating loss and maintaining its full-year outlook.

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🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Intel’s divestment reflects semiconductor giant’s financial challenges

Intel’s decision to sell $900 million in Mobileye shares comes amid significant financial challenges for the chip manufacturer.

The company’s market value has dropped from $509 billion in 2000 to $104 billion by December 2024, representing a substantial decline 1.

Intel’s stock dropped over 50% in 2024 alone, which contributed to the company’s removal from the Dow Jones Industrial Average after decades as part of the index 1.

This Mobileye divestment follows Intel’s announcement of layoffs affecting 15% of its workforce, linked to $7 billion losses in its chip manufacturing unit 2.

The sale pattern aligns with other recent Intel moves to generate cash, as its foundry business reported a $7 billion operating loss on $18.9 billion in revenue for 2023 3.

2️⃣ Autonomous driving market faces reality check despite growth potential

Mobileye’s current $15 billion valuation, roughly equivalent to what Intel paid in 2017, reflects the adjustment in autonomous driving expectations across the industry.

The timeline for fully autonomous vehicles has stretched significantly, with Mobileye now focused on incremental advancements through its EyeQ chips and camera systems deployed in approximately 190 million vehicles globally 4.

Despite these challenges, the autonomous driving software market is projected to grow from $1.8 billion in 2024 to $7.0 billion by 2035 at a 13.3% CAGR 5.

Mobileye continues advancing toward SAE Level 4 autonomy with its Chauffeur platform while forging partnerships with major automotive manufacturers, including Volkswagen, Ford, and NIO 4.

The company’s latest quarterly results showing 15% year-over-year growth suggest resilience despite the broader recalibration of autonomous vehicle timelines.

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