Intel said it has no plans in divesting its majority stake in the autonomous driving company
Mobileye Global Inc (NASDAQ:MBLY) is near the top of the Nasdaq Composite (IXIC) today, and that's saying something considering the broad-market burst from tech stocks this morning. The autonomous driving company got some relief after Intel (INTC) -- which owns a majority stake in Mobileye -- said it had no plans to divest its stake.
There were concerns among investors after a Bloomberg report earlier in September indicated the struggling chipmaker was weighing a sell in its stake. Instead, Mobileye got this much-needed quote today: "We believe in the future of autonomous driving technology."
Mobileye stock was last seen up 14.1% to trade at $13.27, on track for its best single-session pop since June 7. MBLY has carved a channel of lower lows all year, to the tune of a 69% year-to-date deficit, largely aided by a 22.5% post-earnings bear gap on Aug. 22. Today, however, the shares are testing their 30-day moving average, a trendline that hasn't been toppled on a closing basis since July 8.
Heading into today, the equity's 14-Day Relative Strength Index (RSI) sat down at 32, on the cusp of 'oversold' territory, and indicating a short-term bounce was imminent. And if a Sept. 12 record low of $10.48 is indeed a bottom, keep an eye on short interest, which has dropped 20% in the two most recent reporting periods. Despite that exodus, the 11.71 million shares sold short still accounts for 12.7% of MBLY's total available float.