Mobileye (MBLY) Surges 5% After Q2 Beat, Shrugs Off Intel Share Sale Shock

Mobileye Global Inc. (NASDAQ:MBLY) shares rebounded 5% on Wednesday after posting strong preliminary Q2 results, reversing a 10% after-hours decline triggered by Intel's (NASDAQ:INTC) plan to offload 45 million shares in a secondary offering.

Q2 Highlights: Strong Growth Amid Supply Chain Normalization

• Estimated Revenue: $502M-$506M
  YoY growth of 14-15% vs. $439M in Q2 2023

• Adjusted Operating Income: $98M-$104M
  Up from $79M YoY

Growth was driven by:

• Rising demand for EyeQ system-on-chip products.

• Inventory normalization by Tier 1 automotive suppliers.

Intel's Strategic Maneuvering

Despite the positive fundamentals, initial market reaction was spooked by Intel's announcement of a large secondary share offering:

• 45M Class A shares for sale.

• 30-day option for underwriters to purchase an additional 6.75M shares.

• Mobileye will repurchase $100M of its shares from Intel at the offering price.

• Intel to convert 50M Class B shares to Class A, but won't sell them—at least not immediately.

This dual move—offloading shares while maintaining a strategic stake—signals Intel's balancing act between liquidity and long-term conviction in Mobileye.

Market Drivers to Watch

Mobileye noted continued strength in automotive demand but remains watchful of macroeconomic risks—especially tariff volatility and potential trade-related headwinds.

For Deeper Analysis: Recommended APIs

1. Earnings Historical API
   → Track Mobileye's earnings growth trends across quarters and evaluate consistency with forward guidance.

2. Key Metrics (TTM) API
   → Analyze Mobileye's trailing twelve-month (TTM) metrics, including revenue per share and ROIC, to gauge ongoing operational efficiency.

Bottom Line

While Intel's share sale may appear concerning on the surface, Mobileye's fundamentals are telling a different story. Strong Q2 growth, robust EyeQ demand, and a thoughtful capital structure strategy have put the spotlight back on execution. Investors betting on the long-term future of autonomous and assisted driving tech are watching this space closely.