Intel Jumps on Plans to Take Its Mobileye Car Business Public

Intel Corp. plans to list shares of its Mobileye self-driving car business by the middle of next year, letting the chipmaker capitalize on its investment in a burgeoning industry.

Intel will remain the majority owner after the transaction, which involves an initial public offering of newly issued Mobileye stock, the company said in a statement Monday. Mobileye’s executive team, led by Amnon Shashua, also will stay on board.

News of the IPO sent shares of Intel up as much as 7.9% on Tuesday, their biggest intraday gain since January. The stock had previously increased just 2.3% this year, trailing ...