Mobileye shares rise after Intel's planned stake sale unveiled

Mobileye Global

09/07/2025 15:30

** Shares of autonomous driving tech firm Mobileye MBLY.O up 1.8% to $18.97 early Weds after secondary offering by chipmaker Intel INTC.O announced

** Israeli-based MBLY late Tues commenced offering of 45 mln Class A shares being offloaded by Intel Overseas Funding Corp with Goldman Sachs and BofA as jt lead bookrunners

** In addition, MBLY agreed to concurrently repurchase $100 mln worth of Class A shares from INTC in private transaction

** INTC also intends to voluntarily convert 50 mln Class B shares into 50 mln Class A shares, saying conversion being effected solely to increase the number of Class A shares outstanding

** Following the transactions, INTC will beneficially own ~82% of MBLY and have approx 98% of voting power, per the prospectus

** As of May 30, MBLY had ~812.5 mln total shares outstanding giving it roughly $15 bln market cap

** Wells Fargo on Weds boosted its MBLY PT by $6 to $24, pointing to positive preannouncement and Taiwan Semiconductor Manufacturing Co (TSMC) agreement

** MBLY late Tues released preliminary Q2 rev estimate of $502-$506 mln, above its prior outlook of about $470 mln

** It also said entered into agreement with TSMC to manufacture components of co's imaging radar and future generations of its EyeQ product, and potentially future products

** Avg rating among 27 analysts covering MBLY is "buy" and median PT is $18 - LSEG data

** With move on Weds, stock down ~5% YTD

** INTC shares on Weds down 1.6% at $23.22 after about 7% gain on Tues

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))