IPO will help pay for new plants

Article Excerpt

INTEL CORP. $26 is a buy. The company (Nasdaq symbol INTC; Manufacturing & Industry sector; Shares o/s: 4.1 billion; Market cap: $106.6 billion; Dividend yield: 5.6%; Takeover Target Rating: Medium; www.intel.com) acquired Israel-based Mobileye, which specializes in computer systems and chips for self-driving cars, in 2017 for $15.7 billion. Intel now plans to sell 41 million shares in Mobileye to the public for $18 to $20 each. The new shares will trade on the Nasdaq exchange under the “MBLY” symbol. The company will still control Mobileye through multiple voting shares. It will use the $820 million it expects to receive through the offering to help fund its plan to spend about $100 billion on new chipmaking plants. Intel is a buy for long-term gains. gains…