Intel has announced it will not divest its majority stake in Mobileye, calming investor concerns and leading to a 19% surge in Mobileye's shares. The chipmaker, which holds 88% of Mobileye, reaffirmed its commitment to the autonomous driving technology sector, citing Mobileye's potential in advanced driver assistance systems. Despite this positive news, Mobileye has experienced significant challenges this year, with its shares down about 73% and recent revenue forecasts diminished due to weak demand, particularly from the Chinese market. Intel CEO Pat Gelsinger is implementing a turnaround strategy for the company that includes operational changes and a focus on value creation. The market is currently cautious about both companies' futures amidst increasing competition in the AI chip space. Mobileye's market value now sits at around $11 billion, indicating that Intel would incur losses if it sold its stake at present.