Intel (INTC) Stock Dips 1% After $900M Mobileye Fire Sale—Are Liquidity Fears Justified?

Intel's shares take a hit as Wall Street questions whether dumping Mobileye for $900M signals desperation or smart restructuring.

Liquidity crunch or strategic pivot? The chip giant's stock slide reveals investor jitters.

Another 'strategic divestiture' that conveniently pads the balance sheet—because nothing says 'strong fundamentals' like selling crown jewels during a downturn.

TLDRs;

• Intel stock fell 1.06% to $23.34 after announcing a $900 million Mobileye share sale.
• The divestment reduces Intel’s stake in Mobileye to below 80 percent and may net $1 billion.
• Investors worry the move signals deeper liquidity issues as Intel combats foundry losses.
• Mobileye remains committed to growth, forecasting a 15% revenue increase in Q2 2025.

Intel’s stock edged down Tuesday, shedding 1.06% to settle at $23.34 in early afternoon trading, following the company’s announcement that it plans to sell $900 million worth of its stake in Mobileye.

The move, intended to shore up cash reserves, has sparked investor concerns over Intel’s financial footing just weeks ahead of its next earnings report.

The stock dipped $0.25 from its previous close of $23.59, with intraday trading ranging between $23.13 and $23.53. Intel’s current market capitalization sits at approximately $101.79 billion, a dramatic fall from the highs it once commanded at the turn of the millennium.

Intel confirmed the planned divestment of 45 million Mobileye shares at around $19 apiece in a late statement on July 8, 2025. Underwriters Goldman Sachs and Bank of America have also been granted the option to sell an additional 6.5 million shares, potentially lifting total proceeds to nearly $1 billion. Mobileye itself will buy back $100 million worth of shares from Intel as part of the deal. Once the transaction is complete, Intel’s ownership in Mobileye will drop below 80 percent.

Market signals unease over Intel’s cash strategy

Investors appear to be interpreting the MOVE as a sign that Intel is under increasing pressure to raise capital. The sale follows a series of cost-cutting efforts, including layoffs affecting 15 percent of Intel’s workforce. These belt-tightening measures come on the heels of a $7 billion operating loss from the company’s chip manufacturing division in 2023.

Intel’s ongoing transition from traditional chipmaking to becoming a competitive foundry has strained its balance sheet. With its stock already down more than 50 percent in 2024, the company was dropped from the Dow Jones Industrial Average after decades of inclusion. These developments have compounded concerns that the latest Mobileye sale may be a short-term patch rather than a long-term strategy.

Mobileye’s underperformance adds pressure

Mobileye, Intel’s autonomous driving arm, has also seen its valuation falter since its 2022 return to public markets. Currently valued at about $15 billion, roughly equal to Intel’s acquisition price in 2017, Mobileye’s stock performance has lagged despite the broader growth potential of the autonomous vehicle sector.

Although the market for autonomous driving software is forecast to grow significantly over the next decade, actual deployment has lagged behind initial projections. Mobileye has pivoted to focus on gradual enhancements through its EyeQ chips and camera-based driving systems, now embedded in nearly 190 million vehicles worldwide.

Growth outlook remains steady despite setbacks

Despite recent headwinds, Mobileye projects a 15 percent increase in revenue for Q2 2025 and expects to narrow its operating loss. The company is holding firm on its full-year guidance, suggesting that leadership sees a clear path forward. Partnerships with major automakers like Volkswagen, NIO, and Ford continue to anchor Mobileye’s long-term outlook.

Intel’s upcoming earnings call on July 24 may offer further insights into how the Mobileye sale fits into the company’s broader recovery strategy. For now, investors remain cautious as they weigh the benefits of near-term liquidity against the long-term implications of scaling back on one of Intel’s key innovation bets.