Intel's Stock Surges 6%: Here's Why

On Sept. 17, $Intel (INTC.US)$ 's stock surged 6% after announcing plans to spin off its foundry business into an independent unit. This move will give the foundry more autonomy, allowing it to raise outside capital and attract more external customers. Intel shares closed the day with a 2.7% gain.

Key factors behind the rise:
1. Foundry Business Spinout: Intel's foundry business will operate independently, with its own board, aiming to ease concerns from competitors about sharing their chip designs with Intel.
2. New Deals: Intel secured a new grant and signed a deal with a Magnificent Seven tech company.
3. Future Strategy: This move follows disappointing Q2 results and is part of Intel's effort to reverse its 55% YTD decline.

Intel also plans to produce an AI fabric chip for AWS, leveraging its Intel 18A technology, which could boost its foundry business further.