Intel Stock Surges Amid Mobileye and Lyft Partnership News

Intel (NASDAQ: INTC) experienced a notable increase in its stock price during Monday's trading session. By 2 p.m. ET, shares were up 4%. In comparison, the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) saw modest gains of 0.7% and 1.1%, respectively.

The rise in Intel's stock price is largely fueled by the announcement that Lyft is set to utilize Mobileye’s (MBLY) advanced machine-vision and autonomous driving technologies for a new robotaxi service. Given that Intel holds a majority stake in Mobileye, it stands to gain from any significant contracts that Mobileye secures.

Intel Stock Rises Following Mobileye and Lyft's Collaboration

A report from TechCrunch revealed that Lyft plans to incorporate Mobileye's technology in a robotaxi service anticipated to roll out as early as 2026, starting in Dallas and later expanding to additional cities.

Despite facing challenges recently, the partnership with Lyft represents a significant win for Mobileye. At the same time, Mobileye's stock surged by 14.8% as of 2 p.m. ET, which is promising news for Intel as the majority shareholder.

Looking Ahead: The Future for Intel and Mobileye

Intel first acquired Mobileye in 2017 for $15.3 billion but later spun it off as a publicly traded entity in 2022 while retaining an approximate 88% ownership. With today’s increase, Mobileye's market valuation has risen to around $15.1 billion.

There have been reports indicating Intel might consider selling part of its Mobileye stake to generate funds for its own restructuring initiatives. If Mobileye's stock continues to rise, Intel could see a more favorable outcome if it chooses to divest some of its holdings. Overall, the partnership news is a clear positive development for both Mobileye and Intel.

If Mobileye shows signs of recovery from its previous struggles, this could significantly bolster Intel's ongoing restructuring efforts. Mobileye’s acquisition remains one of the largest in Intel’s history, coming only behind its purchase of Altera for $16.7 billion in 2015.

However, Intel still faces major hurdles within its core business sectors. The company has been losing market share in the CPU sectors for computers and servers, and it has faced considerable financial setbacks in its foundry division. Moving forward, 2025 is poised to be a critical year for Intel, with expectations for major announcements regarding its strategic direction.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has interests in and recommends Intel. They also recommend Mobileye Global and have recommended shorting February 2025 $27 calls on Intel.

Intel, Stock, Mobileye