Carveout lets Intel tap Mobileye’s value

Article Excerpt

Intel recently announced a new long-term strategy, which mainly involves expanding its ability to make chips for other companies. To help fund the cost of building new chip plants, Intel will sell a minority stake in its Mobileye business to the public in 2022. It specializes in computer systems and chips for self-driving cars. Investor demand for Mobileye’s shares should be strong, and set the stage for future share sales or perhaps a complete spinoff. INTEL CORP. $54 is a buy. The company (Nasdaq symbol INTC; Manufacturing & Industry sector; Shares outstanding: 4.1 billion; Market cap: $221.4 billion; Dividend yield: 2.5%; Takeover Target Rating: Medium; www.intel.com) is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all data centres. In the past few years, Intel has used acquisitions to cut its reliance on chips for personal computers. That includes its 2017 purchase of Israel-based Mobileye N.V. for $15.3 billion. The company also continues to sell what it sees…