NEW YORK (TheStreet) -- Mobileye (MBLY) stock is gaining 12.94% to $47.39 on heavy trading volume on Thursday morning following reports that the company will collaborate with chipmakerIntel (INTC) and automaker BMW to create self-driving car technology, sources told Bloomberg.

Shares of Intel are up 1.33% to $32.35 this morning. 

Jerusalem-based Mobileye develops software and other components for advanced driver assistance systems and autonomous driving technologies.

Mobileye, which has clients such as General Motors (GM), Tesla Motors (TSLA) and BMW, was an early creator of self-driving technology for cars as the auto industry seeks to improve the technology to replace traditional drivers, Bloomberg added.

TheStreet's Jim Cramer believes companies will continue to develop self-driving cars because "in the end a drunk driver is not as good as a driverless car."

"Mobileye is going to be up substantially" on this partnership, Cramer, portfolio manager of the Action Alerts PLUS charitable trust, added on CNBC's "Squawk on the Street" this morning.

So far today, 11.53 million shares of Mobileye have been traded, compared with its average daily volume of 2.89 million shares.

Separately, Mobileye has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's generally disappointing stock performance and premium valuation.

You can view the full analysis from the report here: MBLY

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 article's author.

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