What's Going On With Intel Stock Today?

Intel Corp INTC shares are trading higher Wednesday after the company announced plans to spin off its Programmable Solutions Group business.

What Happened: Intel said it plans to operate its Programmable Solutions Group as a standalone business, which will give it flexibility for accelerated growth and help it to more effectively compete.

Standalone operations are expected to begin on Jan.1, 2024 and Intel will report the new arm as a separate business when it reports its first-quarter financial results. The business unit will also receive ongoing support from Intel as the two businesses remain strategically aligned. 

Sandra Rivera, executive vice president at Intel, is set to become the CEO of Intel's Programmable Solutions Group and Shannon Poulin will become COO.

"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 approximately 13.4% year-to-date. 

Intel is scheduled to report its third-quarter financial results after the market closes on Oct. 26. The company is expected to report EPS of 26 cents and revenue of $13.47 billion, according to estimates from Benzinga Pro.

See Also: Why Software Company A10 Networks' Shares Are Diving Today

INTC Price Action: Intel shares were up 2.47% at $36.57 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Intel.