Mobileye Global Inc (NASDAQ:MBLY) stock was trading higher Thursday after Intel Corp (NASDAQ:INTC) said it does not plan to divest its majority interest in the company. U.S. Fed rate cut also had a bearing on the stock price movement.
Intel made the statement after winning a multi-year, multi-billion-dollar U.S. chipmaking deal from existing customer Amazon.com Inc (NASDAQ:AMZN) cloud unit and U.S. semiconductor grant.
Intel also won up to $3 billion in CHIPS and Science Act funding, in addition to the $8.5 billion in grants and $11 billion in loans the struggling chipmaker previously won under the act.
Also Read: Intel Missed Out on PlayStation 6 Chip Deal to AMD: Report
Intel stock is down 43% in the last 12 months as its foundry unit failed to capitalize on the AI shift.
Prior reports indicated Intel's plans to divest up to 88% of its stake in the Israeli autonomous driving company.
Mobileye Global stock is down 70% in the last 12 months as it slashed revenue guidance after posting a topline decline in the second quarter. The company also flagged impending challenges due to China's weak demand.
It expects fiscal 2024 revenue of $1.60 billion–$1.68 billion below the $1.87 billion analyst estimate.
Price Action: MBLY stock is up 14.4% at $13.28 at last check Thursday.
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Photo courtesy of Mobileye.