What Is Mobileye? 8 Things to Know About Intel’s Self-Driving Car Tech.

Intel (NASDAQ:INTC) announced Monday that Israel-based subsidiary, Mobileye, best known for its self-driving technology, will go public in 2022.

cockpit of futuristic autonomous car
Source: metamorworks / Shutterstock.com

Mobileye is one of the leaders of the smart-car wave, quickly becoming a household name and source of Intel pride. After gaining unanimous approval from the board of directors, Intel is eyeing mid-2022 for the initial public offering (IPO). Intel stock has seen a fortuitous jump on the news, currently trending close to 5% up on the day. Reasonably so. As per the announcement, Intel will continue to operate as the majority owner of the anticipated tech company.

Intel CEO Pat Gelsinger explained the move, while singing Mobileye’s praises:

“Intel’s acquisition of Mobileye has been a great success. Mobileye has achieved record revenue year-over-year with 2021 gains expected to be more than 40 percent higher than 2020, highlighting the powerful benefits to both companies of our ongoing partnership … an IPO provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”

So, what do you need to know about Mobileye ahead of its IPO next year?

What Is Mobileye? 8 Things to Know About Intel’s Biggest Breadwinner

  1. To start, Intel currently owns 100% of Mobileye.
  2. Indeed, Intel acquired Mobileye in 2017 for roughly $15 billion, after Mobileye went public itself in 2014.
  3. Mobileye is a big player in the semiconductor industry, especially for cars. It recently shipped its 100-millionth EyeQ system-on-chip. Furthermore, Intel predicts that by 2030, semiconductors will make up 20% of premium vehicles’ material costs.
  4. Additionally, Mobileye has seen substantial revenue growth and technological innovation. It has nearly tripled annual chip shipments, revenue and its number of employees since coming under Intel ownership.
  5. Mobileye is all-in on a self-driving future. Just this past July, the company began testing autonomous cars in the streets of New York.
  6. CEO Amnon Shashua has been known to throw the occasional jab at smart-car competitor, Tesla (NASDAQ:TSLA). In a January presentation, without mentioning Tesla, Shashua described how a smart-car company might “deploy a crappy system, call it beta.” This is suspected to be in reference to Tesla’s disastrous self-driving beta, initially released last October.
  7. While this technology is exciting, widespread use of self-driving cars, many suspect, could be decades away.
  8. There have been no formal filings that guarantee the IPO. Therefore, Intel is under no obligation to follow through on the announcement at this time.

On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/what-is-mobileye-8-things-to-know-about-intels-self-driving-car-tech/.

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