Intel Found A New Market To Put 'Loads And Loads Of New Chips'
Intel Corporation (NASDAQ: INTC)'s $15 billion acquisition of Mobileye NV (NYSE: MBLY) shocked many on Monday. The question on many investors minds is did Intel pay a fair price for a company when keeping in mind some analysts valued the stock at just $10 per share?
Bloomberg's Cory Johnson suggested during Monday's "Bloomberg Daybreak: Americas" that the price tag was expensive given Mobileye's revenue base of just $350 million but it's important to consider the acquisition also marks an important shift for Intel into the assisted driving space.
Johnson emphasized the fact that this is important "change in computing" for Intel since it missed out on mobile phones at a time when it's so focused on the PC market. In fact, Intel's CEO Brian Krzanich is focused on "finding new markets to put loads and loads of chips" and that biggest market right now is the autonomous driving space.
"Mobileye is a leader in the car semiconductor market and I think Intel recognizes it as a company that is a well run company, enormously profitable - for what it is." he said. "Maybe more importantly it is a technology leader in the assisted driving market."
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