Intel (INTC) shares are down by over 20% since July peaks, ever since it announced that its 7nm node is delayed by six to twelve months. This gave birth to a plethora of speculative discussions across various investing forums on how the chipzilla’s management can possibly boost shareholder returns. Amongst the many proposals, fellow Seeking Alpha contributor The Value Portfolio pitched an intriguing idea that Intel may want to spin off Mobileye. While it was a well-written and clearly articulated thesis, I believe such a move may be detrimental to Intel and its long-term shareholders for now.
For the uninitiated, Intel acquired Mobileye back in 2017 for $15.3 billion. This ADAS and autonomous driving systems startup had recorded only $358 million in revenue in FY16, which meant the buyout took place at over 42 times its trailing fiscal year sales. Intel’s management was openly lambasted across