Intel says it has no plans to divest majority interest in Mobileye

Despite speculation to the contrary, Intel (NASDAQ:INTC) said on Wednesday that it has no current plans to divest its majority holding of autonomous driving company Mobileye (NASDAQ:MBLY).

“As the majority shareholder in Mobileye, Intel has an unwavering focus on value creation and are excited about the future of its business,” Intel said in a statement. “We currently do not have any plans to divest a majority interest in the company. By providing Mobileye with separation and autonomy, we have enhanced its ability to capitalize on growth opportunities and accelerate its path to creating even greater value. We believe in the future of autonomous driving technology and in Mobileye’s unique role as a leader in the development and deployment of advanced driver assistance systems.”

Intel shares rose 2% in premarket trading, while Mobileye was up more than 6.5%.

Intel divested off a portion of Mobileye in October 2022 in an initial public offering that raised $861M.

Intel Chief Executive Officer Pat Gelsinger made several announcements earlier this week — including pausing construction on plants in Europe — in an effort to shore up the company’s finances and technological prowess, amid pressure from shareholders over a slumping stock price.

The moves received slightly positive reactions from Wall Street analysts.