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Lyft and Mobileye team up for autonomous vehicle push

Published 06/11/2024, 14:06
INTC
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JERUSALEM - Ride-hailing company Lyft , Inc. (NASDAQ: NASDAQ:LYFT) and autonomous vehicle technology firm Mobileye (NASDAQ: MBLY) have announced a collaboration aimed at accelerating the commercialization of autonomous vehicle (AV) services. The partnership plans to harness Lyft's extensive rider network and Mobileye's AV technology to cater to fleet operators across North America.

The initiative will enable AV operators to purchase vehicles equipped with Mobileye Drive, which are ready for integration with Lyft's platform. These operators will have access to Lyft's 40 million annual riders, optimizing fleet utilization and profitability. Additionally, Mobileye's new cloud-based AV demand technology will connect these vehicles with AV fleet operators, potentially enhancing the availability of autonomous rides for Lyft users.

David Risher, CEO of Lyft, emphasized the importance of Mobileye's technology in preparing autonomous fleets for Lyft's platform, expressing confidence in the partnership's contribution to the company's autonomous future. Prof. Amnon Shashua, President and CEO of Mobileye, highlighted the collaboration's potential to expand autonomous services into new markets, leveraging Lyft's extensive rider network to achieve sustainable business models.

Mobileye, recognized for its expertise in AI, computer vision, and mapping, has been instrumental in advancing driver-assistance systems and autonomous driving technologies. The company, which became independent from Intel in 2022 while still being majority-owned by it, has equipped approximately 180 million vehicles worldwide with its technology as of the end of 2023.

The collaboration marks another step in Mobileye's global strategy to bring autonomous mobility to passengers, with ongoing pilot projects in various countries, including the United States. This partnership reflects the growing trend of integrating autonomous technology into mainstream transportation services.

This announcement is based on a press release statement and contains forward-looking statements regarding Lyft's autonomous vehicle strategy and partnership with Mobileye. Actual results may differ due to various factors, as detailed in Lyft's regulatory filings.

In other recent news, Intel Corporation (NASDAQ:INTC) has been making significant moves in both its financial and operational divisions. The company's third-quarter revenue reached $13.3 billion, marking a 4% sequential increase, despite facing challenges such as a $3 billion non-cash impairment and restructuring charges. Intel's programmable chips division, Altera, also showed a 14% sequential increase in revenue, reaching $412 million for the quarter ending September 30.

Private equity firms Silver Lake and Bain Capital are reportedly preparing bids for a minority stake in Altera, a move that Intel CEO Pat Gelsinger has indicated is a precursor to an initial public offering planned for early 2025. Francisco Partners has also expressed interest in acquiring a stake in Altera. The specifics of the potential deal remain undisclosed, but the transaction could be valued at several billion dollars.

In addition to these developments, Intel has announced key product launches and strategic initiatives aimed at enhancing its market position and profitability. The company maintains full-year guidance for Mobileye with $485 million in revenue and projects Q4 revenue to be between $13.3 billion and $14.3 billion. These recent developments reflect Intel's broader strategy to navigate financial challenges and refocus its business operations.

InvestingPro Insights

As Lyft and Mobileye forge ahead with their autonomous vehicle partnership, it's worth examining Intel's position in this evolving landscape, given its majority ownership of Mobileye. According to InvestingPro data, Intel's market capitalization stands at $100.58 billion, reflecting its significant presence in the semiconductor industry.

An InvestingPro Tip highlights that Intel has maintained dividend payments for 33 consecutive years, demonstrating a commitment to shareholder returns despite recent challenges. This could be particularly relevant as the company navigates the transition in the automotive and technology sectors towards autonomous vehicles.

However, Intel's financial performance has been mixed. The company's revenue for the last twelve months as of Q3 2024 was $54.25 billion, with a modest growth of 2.62%. Yet, the operating income for the same period was negative at -$3.73 billion, indicating ongoing profitability challenges.

Another InvestingPro Tip suggests that analysts do not anticipate Intel being profitable this year. This aligns with the negative earnings per share of -$3.76 reported for the last twelve months, which could impact Intel's ability to invest in emerging technologies like those being developed by Mobileye.

For investors interested in a deeper analysis of Intel's position in the autonomous vehicle market and its overall financial health, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Intel, providing a comprehensive view of the company's prospects in this rapidly evolving tech landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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