Shares of Intel shot up nearly 10% in after hours trading on apparent optimism from an open letter the company’s CEO, Pat Gelsinger, sent to employees last night.
Shares of Intel shot up nearly 10% in after hours trading on apparent optimism from an open letter the company’s CEO, Pat Gelsinger, sent to employees last night. In the letter, Gelsinger outlined the “next phase of Intel’s transformation”, which among other things includes turning its chip making business into an independent subsidiary inside of Intel, as was previously rumored.
“A subsidiary structure will unlock important benefits. It provides our external foundry customers and suppliers with clearer separation and independence from the rest of Intel. Importantly, it also gives us future flexibility to evaluate independent sources of funding and optimize the capital structure of each business to maximize growth and shareholder value creation”, Gelsinger explained in the letter.Intel’s Foundry leadership team will remain in place and continue reporting to Gelsinger.
