Intel plans to make Mobileye, a self-driving vehicle, public
- ByStartupStory | March 9, 2022
Intel Corp. has filed paperwork to take its Mobileye self-driving car unit public, as the semiconductor behemoth aims to pique investor interest in its own stock while also capitalizing on surging demand for autonomous vehicles.
Intel announced last year that it would list Israel-based Mobileye, which it purchased for $15 billion in 2017. According to those familiar with the situation, the unit might be valued at more than $50 billion.
Pat Gelsinger, who took over as CEO of Intel last year, has been seeking to reshape the firm by investing in new chip-making plants and beefing up its engineering team. Intel agreed to pay roughly $6 billion for Israeli chipmaker Tower Semiconductor Ltd. last month. However, the initiatives have failed to improve the company’s stock price, owing to concerns that the spending may have a negative impact on performance in the near future.
According to Intel’s most recent earnings report, Mobileye generated revenue of $1.4 billion in 2021, up 43 per cent from the previous year, with an operating profit of $460 million. If revenue grows at the same rate as last year, revenue will be around $2 billion, implying a valuation of around 25 times current-year revenue.
Mobileye collects driving data from an estimated 45 million to 50 million vehicles. In an AI-driven society, data is the fuel, and Mobileye has more driving data than everyone else combined. Mobileye is at the forefront of robotaxi and mobility as a service deployment. As a result, Mobileye is a valuable asset for the future of autonomous vehicles.
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