Intel is also converting 50 million Class B shares into publicly traded Class A shares, while Mobileye will repurchase $100 million worth of stock directly from Intel.
Mobileye shares slipped in after-hours trading on Tuesday after Intel disclosed plans to sell a large portion of its stake in the company.
Intel Overseas Funding Corporation, a wholly owned subsidiary of Intel, is offering 45 million shares of Mobileye’s Class A stock in a public offering. The underwriters also have a 30-day option to buy up to 6.75 million additional shares.
While Mobileye isn’t selling any shares itself, it will repurchase $100 million worth of its own stock directly from Intel at the same price offered to institutional buyers.
The buyback was approved by Mobileye board members not affiliated with Intel.
Intel also plans to convert 50 million of its Class B shares into publicly traded Class A shares, adding to the float.
According to Mobileye, Intel’s subsidiary intends to hold the converted shares.
Mobileye on Tuesday said it expects second-quarter revenue to come in between $502 million and $506 million, which would be above analyst estimates of $466.4 million.
It also guided for an adjusted operating income of $98 million to $104 million, compared with $79 million a year earlier.
In a filing, the Israel-based company stated that the recent escalation with Iran in June has not had a material impact on its operations so far, and it has measures in place to deal with any disruptions.
Mobileye also said it reached a supply deal with Taiwan Semiconductor Manufacturing Company (TSMC), to increase capacity along with existing partner STMicroelectronics.
TSMC is set to manufacture components for Mobileye’s imaging radar and future EyeQ chips.
On Stocktwits, retail sentiment for Mobileye was ‘neutral’ amid ‘high’ message volume.
One user said, “Intel sold – that is bad – nothing else matters.”
Another, however, remained optimistic, saying they were holding long to $40.
Mobileye’s stock has declined 6.9% so far in 2025.
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