From Nasdaq: 2024-09-19 11:41:38

If you own shares of Mobileye (MBLY) or Alphabet (GOOG) today, thank Intel for the stock spike. The surge is tied to Intel’s announcement that it will not sell its stake in Mobileye. Intel’s stock is up 3%, Alphabet’s up 1.8%, and Mobileye’s up 15.3%.

The news is that Intel believes in the future of autonomous driving technology and sees value in Mobileye’s role as a leader. This is good news for investors worried about a potential stake sell-off. It could also benefit Alphabet’s plans for its self-driving cars venture, Waymo.

Investors may wonder if Mobileye stock is a buy. While Mobileye isn’t expected to report GAAP profits until at least 2026, it is generating significant free cash flow. Analysts anticipate $435 million in cash profit next year. The stock isn’t cheap, but with free cash flow expected to triple post-2025, Mobileye could be an asset worth holding onto.

Consider carefully before investing $1,000 in Mobileye Global. The Motley Fool’s Stock Advisor team shares their 10 best stock picks, which may offer better returns. Stock Advisor has outperformed the S&P 500 since 2002. Suzanne Frey from Alphabet serves on The Motley Fool’s board, and The Motley Fool has positions in and recommends Alphabet, Intel, and Mobileye Global.



Read more at Nasdaq: Why Intel, Alphabet, and Mobileye Stocks All Popped Today