We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Intel Buys Mobileye: Are More Driverless Car Deals in the Future?
Read MoreHide Full Article
On Monday, semiconductor chip maker Intel Corp. (INTC - Free Report) announced a huge move in the self-driving car race, buying Israeli firm Mobileye NV (MBLY - Free Report) for a reported $15.3 billion. The deal values Mobileye at about $63.54 per share, which is a 34% premium to its closing price last Friday. MBLY stock skyrocketed around 30% to $61.35 per share in morning trading on Monday, while shares of INTC were down about 2% to $35.22 per share.
Intel plans on integrating its own automated driving group with Mobileye’s renowned operations, and the combined entity will be run by Mobileye Chairman Amnon Shashua. The deal will combine Intel’s processors with Mobileye’s renowned computer vision, making it the biggest purchase of a company that’s solely focused on the self-driving market.
Not only is this acquisition a huge deal for Intel, but it’s also an endorsement of both the Israeli tech scene as well as the entire self-driving vehicle industry as a whole. Big-name automakers like Tesla (TSLA - Free Report) , General Motors (GM - Free Report) , Volkswagen’s Audi unit, Volvo (VLVLY - Free Report) , and Ford Motors (F - Free Report) , among many others, are racing to get a self-driving car model on the road, while tech giants like Alphabet (GOOGL - Free Report) and Uber sprinting just as fast to perfect the technology behind the cars.
Last year, GM spent $1 billion to speed up its self-driving program with the acquisition of Cruise Automation, while Uber recently bought self-driving truck maker Otto for $680 million last August. These two transactions are just the tip of the iceberg, and with 2020 fast approaching, we should expect even more deals from the biggest players in the driverless car market
If the necessary regulations are in place, 2020 is the year every company, tech and automaker, in the race plans to have a working self-driving car—or fleet—on the road.
Intel and Mobileye already have previous ties, having partnered with German automaker BMW AG to test about 40 self-driving cars on the road. It will be interesting to see which automaker will be lucky enough to be able to utilize the new entity’s technology.
The deal will add to Intel's adjusted per share earnings, and is expected to close in the next nine months.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Intel Buys Mobileye: Are More Driverless Car Deals in the Future?
On Monday, semiconductor chip maker Intel Corp. (INTC - Free Report) announced a huge move in the self-driving car race, buying Israeli firm Mobileye NV (MBLY - Free Report) for a reported $15.3 billion. The deal values Mobileye at about $63.54 per share, which is a 34% premium to its closing price last Friday. MBLY stock skyrocketed around 30% to $61.35 per share in morning trading on Monday, while shares of INTC were down about 2% to $35.22 per share.
Intel plans on integrating its own automated driving group with Mobileye’s renowned operations, and the combined entity will be run by Mobileye Chairman Amnon Shashua. The deal will combine Intel’s processors with Mobileye’s renowned computer vision, making it the biggest purchase of a company that’s solely focused on the self-driving market.
Not only is this acquisition a huge deal for Intel, but it’s also an endorsement of both the Israeli tech scene as well as the entire self-driving vehicle industry as a whole. Big-name automakers like Tesla (TSLA - Free Report) , General Motors (GM - Free Report) , Volkswagen’s Audi unit, Volvo (VLVLY - Free Report) , and Ford Motors (F - Free Report) , among many others, are racing to get a self-driving car model on the road, while tech giants like Alphabet (GOOGL - Free Report) and Uber sprinting just as fast to perfect the technology behind the cars.
Last year, GM spent $1 billion to speed up its self-driving program with the acquisition of Cruise Automation, while Uber recently bought self-driving truck maker Otto for $680 million last August. These two transactions are just the tip of the iceberg, and with 2020 fast approaching, we should expect even more deals from the biggest players in the driverless car market
If the necessary regulations are in place, 2020 is the year every company, tech and automaker, in the race plans to have a working self-driving car—or fleet—on the road.
Intel and Mobileye already have previous ties, having partnered with German automaker BMW AG to test about 40 self-driving cars on the road. It will be interesting to see which automaker will be lucky enough to be able to utilize the new entity’s technology.
The deal will add to Intel's adjusted per share earnings, and is expected to close in the next nine months.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>