Intel to sell $1.5 billion worth of Mobileye shares

Intel is going to sell nearly $1.5 billion worth of Mobileye shares to help fund its spending plans. Yahoo Finance Live breaks down the stocks' reaction.

Video transcript

JULIE HYMAN: Let's talk about another chip-maker though that you alluded to. That's Intel. It's taken a couple of hits today. Initially it dropped yesterday about 4.5% after Apple announced its latest PCs with its own M2 chip, and also a regulatory filing on Monday showed Intel is offering 35 million shares or about 1.5 billion stake in its self-driving tech unit Mobileye.

Now, we knew that it was going to be working down some of its stake in Mobileye, right? But Mobileye is the unit that it bought and then spun off late last year. $21 a share is where it spun it off, and the shares have done well since then, but they're falling today.

BRAD SMITH: Yeah, and it also kind of gives a nod to the amount of competition that is continuing to come about, especially in the assisted driving market as well. You've got other chip makers that are selling within their own partnerships. NVIDIA has absolutely been kind of crushing the mindshare game right now and everything from AI all the way into gaming GPUs and then even further more still maintaining some of their, of course, dominance where they can in the driving-- assisted driving market.

And then Qualcomm as well is going to be an interesting one to track within that space too seeing some development in their own partnerships that they're able to net out. So a larger question of what Intel might be sensing in the water that leads them to perhaps at least convert or see some liquidity in that share-- in the amount of shares that they had held on to in Mobileye still.