A Mobileye IPO Could Help Intel's Stumbling Stock
Chip giant Intel (NASDAQ: INTC) paid $15.3 billion for autonomous driving company Mobileye in 2017. Intel saw a huge opportunity at the time, saying that the market for vehicle systems, data, and services could grow to $70 billion by 2030.
Nothing has likely changed about that opportunity as the automotive industry marches toward an electric and autonomous future. Mobileye has shipped over 100 million of its EyeQ chips, which support an array of advanced driver assistance functions. Future versions of EyeQ are expected to support semi- and fully autonomous driving.
What has changed is the premium investors are willing to hand out to any company working on electric cars or autonomous vehicle technology. Tesla is a $1 trillion company, worth more than all the other major automakers combined; graphics chip company Nvidia, which offers a platform that rivals Mobileye, has seen its stock soar over the past few years; and EV upstart Rivian is worth nearly $100 billion despite never selling a single vehicle.
Source Fool.com
