Intel Corp. plans to list shares of its Mobileye self-driving car business, according to a person familiar with the situation, letting the chipmaker capitalize on its investment in a burgeoning industry.
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The person who asked not to be identified because the matter is private, said the company could announce the move within the next day. The news sent Intel's shares up as much as 8.2% to $55.19 in late trading Monday.
Intel, based in Santa Clara, California, didn't respond to a request for comment. The Wall Street Journal previously reported on the move, saying it would value the business at more than $50 billion.
Pat Gelsinger, Intel's chief executive since taking over the company in February, wants to revive the fortunes of the world's largest chipmaker. Intel, a leading maker of computer processors, has ceded market share to rivals such as Advanced Micro Devices Inc. and lost its technological edge in key markets.
Mobileye has been a bright spot against that backdrop. The business, acquired in 2017 by Intel for $15 billion, has grown faster than its parent and serves a still-nascent industry. The market for automotive silicon will reach $115 billion by the end of the decade, according to Intel.
The shift to electric vehicles and more autonomous cars is creating a huge appetite for electronics. Mobileye makes chips and software that work with sensors to let vehicles handle more driving functions, with the ultimate goal of replacing humans in the role altogether.
According to Guidehouse Insights, Mobileye has about 80% of the global market for advanced driver-assistance vision systems.
The Israeli unit has tested its technology in robo-taxi fleets in Tokyo, Paris, Shanghai and Detroit. Revenues were $326 million in the last quarter, up 39% from a year ago. The operating income went up to $105 million, double the year-earlier total. In the third quarter, Intel posted a 5% revenue increase.
Intel has made a number of moves to push deeper into transportation technology. In 2020, it acquired Israeli startup Moovit for $900 million. The acquisition gave it access to data from public transport mapping, which could be integrated with a ride-hailing service.
Intel's comeback effort has been slower going. The stock fell after the company's last earnings report in October, when management warned that the turnaround would hurt profitability over the next few years. Investors are waiting to see if Gelsinger can improve Intel's products quickly enough to keep more customers from switching to competitors or designing chips themselves. None The Fall of a Russian Cyberexecutive Who Went Against the Kremlin