Nvidia and Advanced Micro Devices continue to lead chips as investors await Mobileye’s IPO

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Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ:AMD) led the semiconductor industry higher on Tuesday as investor attention turns to Intel (NASDAQ:INTC) and the upcoming spin-off of its automated driving unit, Mobileye (MBLY), scheduled for later this week.

Just before 1 p.m. EST, Nvidia (NVDA) and Advanced Micro Devices (AMD) were each up more than 5%. AMD was nearing its best in more than two weeks while Nvidia (NVDA) climbed steadily higher.

Other chip stocks like Qualcomm (QCOM), Monolithic Power Systems (MPWR), Microchip Technology (MCHP), and ON Semiconductor (ON) also posted healthy gains, rising 2% or more.

Texas Instruments (NASDAQ:TXN), which is due to release third-quarter results after the close, was also up more than 1%.

Broadcom (AVGO), Micron Technology (MU) and Qorvo (QRVO) posted more muted gains among the components of the S&P 500.

Intel (INTC) rose 0.7% in midday trade as the Santa Clara, Calif.-based chip giant poised to spin off a portion of Mobileye.

In December, some analysts speculated that Mobileye (MBLY) was worth $50 billion, but now it looks more like it’s worth $16 billion. For comparison purposes, Intel bought the company in 2017 for around $15.3 billion.

Intel (INTC) may raise up to $820 million from the sale of between 10% and 20% of Mobileye (MBLY) in the $18-$20 per share offer, although the majority owner of Mobileye (MBLY ) will stay.

For the six months ended July 2, Mobileye (MBLY) reported revenue of $854 million on gross profit of $405 million. It generated an operating loss of $36 million and a net loss of $67 million over the same period.

Mobileye (MBLY) listed a range of competitors ranging from semiconductor companies like Ambarella (AMBA), Advanced Micro Devices (AMD) and Nvidia (NVDA) to automotive companies like Tesla (TSLA) and Google’s (GOOG) (GOOGL) Waymo , GM’s (GM) Cruise and even Apple (AAPL).

Earlier this month, Nvidia (NVDA) announced that it is expanding its existing partnership with Oracle (ORCL) to boost the adoption of artificial intelligence in enterprises.