Intel shares were up more than 8% in premarket trade Tuesday after the chipmaker announced it would go public with its Mobileye self-driving car company.
Mobileye’s initial public offering in the United States is scheduled for the middle of next year. According to people familiar with the topic, the move, which was initially reported by The Wall Street Journal, could value Mobileye at more than $50 billion.
In a press release, Intel (ticker: INTC) stated that it will retain majority ownership of Mobileye.
In premarket trade Tuesday, Intel shares jumped 8.1 percent to $55.12. In 2021, the stock has gained by only 2.3 percent.
Mobileye is a manufacturer of advanced car safety technologies that Intel purchased in 2017 for approximately $15 billion. Mobileye essentially pioneered the use of cameras in automobiles to aid in the development of features such as adaptive cruise control and lane-keeping assistance—two antecedents of self-driving cars.
At 10:15 a.m. ET, Intel and Mobileye will have a webcast. On the call will be Intel CEO Pat Gelsinger and Mobileye founder and CEO Amnon Shashua.
Shashua and the Mobileye executive team will continue at Intel, according to Intel.
“Intel’s acquisition of Mobileye was a resounding success.” “Mobileye has earned record revenue year over year, with 2021 gains estimated to be more than 40% greater than 2020, showing the significant benefits to both firms of our ongoing collaboration,” stated Intel CEO Pat Gelsinger.
“Amnon and I agreed that an IPO is the best way to capitalize on Mobileye’s track record of innovation while unlocking value for shareholders.”
According to the Journal, Mobileye’s revenue has approximately tripled since Intel purchased the company. Its revenue increased by 39% year on year to $326 million in the third quarter.
The anticipated offering of Mobileye is the latest step by Gelsinger, who took over as CEO of the semiconductor behemoth in February, to turn the firm around. Intel has lagged behind competitors such as
Advanced Micro Devices (AMD) and