Self-Driving Tech Firm Mobileye Surges 37% in Nasdaq Debut
Mobileye jumps over 37% on its first day of trading after Intel spins off the self-driving car technology company. The successful debut marks a rare significant tech IPO in a sluggish market.
Mobileye shares surge more than 37% in their stock market debut on Wednesday as the maker of self-driving car technology spins out from Intel. This successful launch provides a rare opportunity for investors in a year that otherwise sees no significant tech IPOs in the United States. The stock trades under the ticker MBLY and rises to $27.85 after pricing at $21 per share.
Intel retains control of Mobileye and holds over 750 million shares of Class B stock, which carries ten times the voting power of Class A stock. The IPO raises $861 million, and Intel plans to use some of these funds to build more chip factories. This listing is part of Intel's broader strategy to turn around its core semiconductor business, which lags behind rivals like AMD and Nvidia in recent years.
Despite the strong first-day pop, Mobileye's market cap remains far below Intel's earlier expectations. This lower valuation reflects how tech investors cool on IPOs and adjust their expectations from the high-flying days of the past half-decade as interest rates rise and the economy slows. Founded in 1999, Mobileye partners with major automakers like Audi, BMW, and Ford to develop advanced driving and safety features using its EyeQ camera system, chips, and software.