Mobileye Global Inc. (NASDAQ: MBLY) shares skyrocketed on Thursday after Intel Corp (NASDAQ: INTC) assured investors it would not drop its majority stake in the Israeli autonomous driving company.
Mobileye gained 14.99% to close at $13.35 on Thursday, marking its largest intraday jump since late October 2022.
"We currently do not have any plans to divest a majority interest in the company," Intel said in a statement.
"By providing Mobileye with separation and autonomy, we have enhanced its ability to capitalize on growth opportunities and accelerate its path to creating even greater value."
Intel, which holds an 88% stake in Mobileye, said it believes in the future of autonomous driving technology and in Mobileye's "unique role as a leader" in developing advanced driver assistance systems.
Intel CEO Pat Gelsinger has been changing his company's operations and showed more of his plans earlier this week to get the troubled chipmaker back on track, including pausing building factories in Germany and Poland and turning its manufacturing sector into a wholly owned subsidiary, Bloomberg reported.
Intel discussed possibly selling some its Mobileye stake either on the public market or through a third-party sale, Bloomberg reported earlier this month.
Mobileye, which provides both software and hardware for self-driving systems, was acquired by Intel in 2017 for about $15 billion. It had an initial public offering in 2022, but Intel held most of the stake.