Why Mobileye (MBLY) Stock Is Advancing Today
NEW YORK (TheStreet) -- Shares of Mobileye (MBLY) are gaining 1.95% to $47.03 on heavy trading volume late Friday afternoon after the company said it is working with BMW and Intel (INTC) to make self-driving vehicles by 2021 following speculation yesterday.
"Mobileye is proud to contribute our expertise in sensing, localization, and driver policy to enable fully autonomous driving in this cooperation," the Jerusalem-based company said in a statement this morning.
Intel said it will provide several chips ranging from its smaller "Atom" chips to its "Xeon" infrastructure microprocessors to handle the complex workloads required for autonomous cars in urban environments, Barron's noted.
The news comes as Tesla Motors (TSLA) is under investigation over a fatality involving one of its vehicles on "autopilot" function.
About 6.04 million of Mobileye's shares were traded by late this afternoon compared to its average volume of 3.63 million shares per day.
The company develops software and other components for advanced driver assistance systems and autonomous driving technologies.
Shares of Intel are declining 0.09% to $32.77 Friday afternoon.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
But the team also finds weaknesses including a generally disappointing performance in the stock itself and premium valuation.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MBLY