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Tae Kim

Mobileye Listing Won’t Solve Intel’s Core Problems

The chipmaker has struggled with sluggish revenue growth and a weak stock price amid growing pressure from competitors including AMD and Nvidia.

Minor move.

Minor move.

Photographer: Krisztian Bocsi/Bloomberg 

Intel Corp. plans to sell a partial stake in one of its hot subsidiaries while still maintaining control over it. Although it might make for big headlines, the move amounts to minor financial engineering that isn’t going to save the chipmaker.

Late Monday, the chipmaker announced it intends to publicly list Mobileye, its driver-assistance and autonomous driving technology division, in mid-2022. Intel plans to retain majority ownership after the IPO and has no intention of divesting or spinning off the unit. After the news, Intel stock rose 3.6% in early trading.