Intel Corp (NASDAQ:INTC) announced on Thursday that it has no plans to divest its majority interest in Mobileye Global (NASDAQ:MBLY), its self-driving technology subsidiary.
The declaration led to an 8% rise in Mobileye's shares during premarket trading, signaling investor confidence in the continued partnership.
The announcement comes amid industry speculation that Intel might sell off assets to focus on its core semiconductor business.
By retaining its stake in Mobileye, Intel reaffirms its commitment to the autonomous driving sector, which is seen as a significant growth area in technology and automotive industries.
Mobileye, acquired by Intel in 2017 for approximately $15.3 billion, specializes in advanced driver-assistance systems and autonomous driving technologies.
The company's innovations are pivotal in the development of self-driving vehicles, a market expected to expand rapidly in the coming years.