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Shares in chip maker giant Intel, which had largely underperformed this year so far, rose more than 4% on Tuesday after the company announced its self-driving car unit in 2022, with a potential value of $ 50 billion to be listed on the stock exchange.

Important facts

The tech giant said it would launch its self-driving automaker Mobileye with a potential value of more than $ 50 billion next year, sources first said The Wall Street Journal.

Intel originally acquired 100% of the Israeli company for $ 15.3 billion in 2017, but valuations for self-driving automakers – similar to those of electric vehicle manufacturers – have skyrocketed in recent years amid massive investor interest.

The chipmaker intends to hold a majority stake in Mobileye after an IPO, with the two companies also continuing as strategic partners, according to a press release from Monday.

Intel’s shares, which have plummeted in recent years, rose up to 8% on the news before declining earnings a bit – with the stock currently up around 4% on Tuesday.

Intel CEO Pat Gelsinger, who assumed the top position in February, added in a statement that Mobileye’s annual revenue is expected to grow more than 40% in 2021.

Mobileye’s proposed IPO is Gelsinger’s latest attempt to turn the company inside out and expand into new markets as Intel faced pressure from investors after several years of poor performance.