Intel will list growing Mobileye division

Intel Plans to IPO Mobileye Division in Mid-2022. So the company wants to attract investment in a fast-growing industry. After the press release, Intel shares are up by 8%, to 55 $.

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What does it do

Mobileye is a chip and software developer. The company's products are used in driver assistance systems and unmanned vehicles.. Mobileye has contracts with about thirty leading automakers.

The company recently introduced a new EyeQ processor. The processor can process data, which come from dozens of sensors, radars and cameras. Mobileye herself calls it a "supercomputer".

According to Intel, By 2030, the market for processors for cars will grow to 115 billion dollars.

Details of the deal

Mobileye first went public in 2014. Three years later, Intel bought the company for $15 billion.. After IPO next year, Intel will remain the majority shareholder, will consolidate Mobileye results in its financial statements. Self-driving car sensor developers and Moovit team to join Mobileye.

Moovit is a mobile app for navigating the city. Moovit helps travelers find public transport, car sharing and more. In 2020, Intel bought the developer for $0.9 billion. Intel expects, that Moovit will strengthen Mobileye's position in the promising robot taxi industry.

Financial question

2020 year was not the best for Mobileye. Car production and consumer demand decreased due to the pandemic, and Mobileye sales grew by only 10%, up to a billion dollars.

Mobileye is a small, but the fastest growing division of Intel. In the latest quarter, Mobileye's revenue grew by 39%, up to 326 million dollars. This 1,7% of total revenue, which increased by only 5%, up to 19.2 billion. According to forecasts, in 2021, Mobileye sales will add 40%, but the total revenue of Intel will not change at all.

Intel's Core Business Has Been Troubled Lately. The company is losing an increasing share of the data center processor market to AMD. And sales of PC processors are falling due to disruptions in the supply chain. Let small, but the growing Mobileye added positive to Intel's reports. And now, probably, the reporting of the company will become even darker.