After 3 years of significant underperformance and a seemingly endless flow of negative headlines, Intel INTC final has some positive news for its patient shareholders.
Intel’s new CEO, Pat Gelsinger, announced that the company would be bringing Mobileye (F:0ME), its cutting-edge automated driving segment, to the public markets. The Mobileye unit is eying an over $50 billion valuation in its anticipated 2022 IPO.
Intel initial purchased Mobileye in 2017 for $15.3 billion and has been able to drive incredible synergistic growth into this Israel-based innovator. A $50+ billion IPO price tag would represent roughly 250% appreciation in less than 5 years.
Despite Intel’s failure to perform in the CPU market, with AMD AMD taking more market share on a seemingly daily basis, this legacy chipmaker has been able to triple Mobileye’s sales, with more than 60 million vehicles now equipped with its cutting-edge chip-technology.
This public spin-off has the markets excited about the investment opportunity that a more focused Mobileye group could provide investors. Intel stated that it would maintain majority ownership of Mobileye following its proposed initial public offering.
INTC shot up nearly 8% on open in the wake of this news but was met with resistance at $55 a share. Pat Gelsinger took the helm at Intel earlier this year and has already been making some serious systemic changes with the company. I’m not a buyer of INTC here but it is a company to keep an eye on.
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Intel Corporation (NASDAQ:INTC
Advanced Micro Devices, Inc. (NASDAQ:AMD
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