Intel Stock Is Moving Higher After The Close: Here's Why

Intel Corp INTC shares are trading higher in Tuesday's after-hours session after the company announced that it plans to operate its Programmable Solutions Group as a standalone business.

What To Know: Intel said it intends to separate its Programmable Solutions Group operations as its own business, giving it the flexibility it needs to accelerate growth and more effectively compete in the industry. 

Sandra Rivera, executive vice president at Intel, will become the CEO of Intel's Programmable Solutions Group. The company also appointed Shannon Poulin as COO.

Standalone operations are expected to commence at the start of 2024 and Intel will report it as a separate business when it reports first-quarter financials. The business unit will receive ongoing support from Intel as the two businesses remain strategically aligned. 

"Our intention to establish PSG as a standalone business and pursue an IPO is another example of how we are consistently unlocking more value for our stakeholders. This will give PSG the independence it needs to keep growing share in the FPGA market, differentiating itself with capacity and supply resilience from IFS, and allowing Intel product teams to focus on our core business and long-term strategy," said Pat Gelsinger, CEO of Intel.

Last year, Intel successfully spun off its Mobileye Global Inc MBLY business. Mobileye shares are up more than 13% year-to-date. 

Intel is set to report its third-quarter financial results after the market close on Oct. 26. The company is expected to report earnings of 26 cents per share on quarterly revenue of $13.47 billion, according to estimates from Benzinga Pro.

See Also: High-Flier Nvidia Could Rally Another 70% On 'Extremely Strong' AI Data Center Demand, Says Analyst

INTC Price Action: Intel shares were up 2.44% after hours at $36.56 after rising 0.65% in Tuesday's regular session, per Benzinga Pro.

Photo: courtesy of Intel.