Investing.com -- Shares of Mobileye Global (NASDAQ:MBLY) Inc. dropped in pre-open trade on Friday after Bloomberg reported that Intel Corp (NASDAQ:INTC). might be looking to offload part of its stake in the company.
Intel is reportedly exploring options to sell some of its 88% ownership in Mobileye either through public markets or to a third party, Bloomberg said citing people with knowledge of the matter.
The Jerusalem-based company, which provides self-driving technology, went public in the US in 2022.
Intel had previously sold a portion of its stake last year, raising around $1.5 billion. However, Mobileye has faced challenges lately, with its stock dropping about 71% this year and its market value now around $10.2 billion.
Mobileye has suffered as automakers have reduced production amid a post-pandemic supply glut across the industry. Last month, it slashed revenue forecasts and lowered its projection for adjusted operating income to well below what analysts were projecting, the report added.
Intel's consideration of selling its Mobileye stake is part of a broader strategic overhaul. The company is also evaluating options for its Network and Edge division, which manufactures chips for networking and telecommunications and saw revenue fall by almost a third last year to about $5.8 billion, results for the period show.
These moves are part of Intel’s chief executive Pat Gelsinger's plan to restore the company's leadership in the semiconductor industry.
With Intel having reported a net loss of $1.61 billion last quarter, analysts anticipate more losses for the year. The company’s board is expected to review various strategic options later this month, the report said.
Shares of Mobileye Global were down 3.7% in pre-open trade on Friday.