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Investing.com -- Mobileye (NASDAQ:MBLY) stock rose 5% after the company’s preliminary second quarter results beat consensus estimates, reversing an earlier 10% post-market decline that followed Intel (NASDAQ:INTC)’s announcement of plans to sell shares.
The automotive technology company expects revenue for the quarter ended June 28 to be between $502 million and $506 million, representing a 14-15% increase compared to $439 million in the same period last year. This growth was primarily driven by higher customer demand for EyeQ system-on-chip products and inventory normalization by Tier 1 customers.
Intel, Mobileye’s majority shareholder, announced plans to sell 45 million shares of Class A common stock in an underwritten secondary public offering. The underwriters will have a 30-day option to purchase an additional 6.75 million shares. Simultaneously, Mobileye agreed to repurchase $100 million worth of its shares from Intel at the same price paid by underwriters in the offering.
Additionally, Intel plans to voluntarily convert 50 million shares of its Class B common stock to Class A stock, contingent on the closing of the offering. According to the company, Intel intends to hold these converted shares rather than sell them immediately.
Mobileye also reported that it expects adjusted operating income for the second quarter to be between $98 million and $104 million, compared to $79 million in the same quarter last year. The company noted that its quarterly results reflect strong industry conditions, though it continues to monitor potential headwinds from tariffs and other macroeconomic factors.
In a separate development, Mobileye disclosed it has entered into an agreement with Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture components of its imaging radar and future generations of EyeQ products, adding to its existing manufacturing relationship with STMicroelectronics.
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