Intel Is Taking Mobileye Public. Is an Acquisition Looming?
In this video, I will be talking about Intel's (NASDAQ: INTC) intent to take Mobileye public at a rumored $50 billion valuation and what that could mean for the company. You can find the video below, but here are some highlights.
- Mobileye went public in 2014 and was acquired by Intel in 2017. Intel currently owns 100% of Mobileye and is expected to retain majority ownership following completion of the IPO. The valuation is rumored to be around $50 billion.
- Last quarter, Intel reported that Mobileye had generated $326 million, up 39% year over year. Unsurprisingly, it is one of Intel's fastest-growing segments.
- Several months ago, news broke that Intel was considering acquiring chipmaker GlobalFoundries for $30 billion. The company was spun out of AMD in 2008. The tricky part here is that GlobalFoundries still counts AMD as a key customer, so a potential Intel takeover might be a deal breaker.
- Intel might use the money raised through this IPO to further fund the company's efforts to turn the ship around or potentially acquire another chipmaker.
- Today there are close to 1,400 chips in a typical vehicle, and that number is only going to increase as the industry continues its move toward electric vehicles. The average electric vehicle has over 2,000 chips. According to Intel, the share of semiconductors is expected to be 20% of a premium vehicle's total bill of materials by 2030.
For the full insights, do watch the video below, and consider subscribing.
*Stock prices used were the closing prices of Dec. 8, 2021. The video was published on Dec. 9, 2021.
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Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
