Intel Spins Off Mobileye in $16B IPO

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Intel Corporation ($NASDAQ:INTC) is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing. These eight men were defectors from William Shockley’s failed transistor company, which he had earlier founded with funding from the military-industrial complex. The original goal of Intel was to build smaller and cheaper transistors than those used in Shockley’s devices. Intel Corporation’s common stock is traded on the Nasdaq Stock Market under the ticker symbol INTC. Intel Spins Off Mobileye in $16B IPO Intel’s Mobileye unit is set to be spun off this week in an initial public offering that could value the company at $16B.

This was first announced in late 2021, but financial markets and the global economy have taken a sharp turn for the worse in 2022. The steep decline in tech stocks and worries over a global recession has prompted Intel to reportedly cut the valuation of the Israeli-headquartered Mobileye multiple times just to get the deal done. The move comes as part of Intel’s larger strategy to offload non-core businesses and focus on its mainstay semiconductor business. The Mobileye IPO is being led by Goldman Sachs and Morgan Stanley, and is expected to price on Wednesday night. The offering is expected to raise around $1B for Intel, and will give the company a minority stake in the newly independent Mobileye.

Market Price

On Tuesday, INTEL CORPORATION stock opened at $27.2 and closed at $27.4, up by 0.8% from prior closing price of 27.2. The company announced that it was spinning off its Mobileye self-driving technology business in an IPO. The move is seen as a positive by most analysts, as it allows Intel to focus on its core businesses while still maintaining a stake in the potentially lucrative self-driving market.

VI Analysis

INTEL CORPORATION is a medium risk investment in terms of financial and business aspects, according to the VI Risk Rating. The company’s fundamentals reflect its long term potential, but there is one risk warning in the non-financial sphere. Registered users can check this out in the app.

VI Peers

With the ever-growing competition in the world of technology, it is no surprise that there is a constant battle between the top companies in the industry. One such battle is between Intel Corp and its competitors Micron Technology Inc, GLOBALFOUNDRIES Inc, and Advanced Micro Devices Inc. All three companies are constantly trying to one-up each other in order to stay ahead in the race to be the best.

– Micron Technology Inc ($NASDAQ:MU)

The company’s market cap as of 2022 is 58.16B. The company’s ROE is 12.3%. The company is a leading provider of semiconductor solutions. The company’s products include DRAM, NAND, NOR and other flash memory products. The company’s products are used in a variety of applications, including mobile devices, computers, servers, storage devices and consumer electronics.

– GLOBALFOUNDRIES Inc ($NASDAQ:GFS)

GLOBALFOUNDRIES Inc is a leading semiconductor foundry that provides advanced technology solutions to clients across the globe. The company has a market cap of 26.85B as of 2022 and a ROE of 5.09%. GLOBALFOUNDRIES Inc offers a wide range of foundry services, including logic, memory, mixed-signal/RF, and embedded processor technologies. The company has a strong client base that includes some of the world’s leading semiconductor companies.

– Advanced Micro Devices Inc ($NASDAQ:AMD)

Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. Its main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.

As of 2022, AMD has a market capitalization of $93.57 billion and a return on equity of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, servers, and mobile devices.

Summary

Investing in Intel Corporation may provide investors with growth potential as the company looks to capitalize on the growing demand for data and computing power. The company is a leading provider of microprocessors and other semiconductor products, and its products are used in a variety of devices, including PCs, servers, and mobile devices. Intel has a strong history of innovation, and its products are often at the forefront of new technology trends. The company is also well-positioned to benefit from the continued growth of the data center market.