How does Intel will spin off altera and gopublic affect Intel's stock price performance? Show me with outline

1. Introduction to Spinoff and IPO: Intel's announcement to spin off its Programmable Solutions Group (PSG), formerly known as Altera, and to operate it as an independent company with plans for an initial public offering (IPO) is a significant corporate action that could potentially impact the company's stock price.
2. Impact on Stock Price: The spinoff and IPO plans could have several implications for Intel's stock price:
   • Positive Market Reaction: The initial market reaction to the announcement of the spinoff and IPO has been positive, suggesting that investors may view this move as a strategic advantage for Intel. This positive sentiment could contribute to an increase in Intel's stock price in the short term.
   • Liquidity and Valuation: The spinoff and IPO may increase the liquidity of Intel's stock by creating a separate publicly traded company. This could potentially lead to a higher valuation for both Intel and the new company, positively impacting Intel's stock price.
   • Strategic Focus and Shareholder Value: The spinoff is aimed at unlocking shareholder value by addressing underperformance and providing more focused management attention to PSG. This strategic move could be perceived positively by investors, potentially boosting the stock price.
3. Financial and Operational Considerations:
   • Financial Structure: Intel's plan to hold a public offering for the new company over the next two to three years indicates a phased approach, which could minimize immediate financial impact but may lead to gradual changes in Intel's financial structure.
   • Operational Independence: The spinoff will provide PSG with the independence needed to compete effectively in the FPGA market, which could contribute to long-term growth and positively affect Intel's stock price.
4. External Factors and Market Dynamics:
   • Market Perception and Competition: The success of the spinoff and IPO hinges on market perception, which will be influenced by the competitive landscape and the demand for programmable chips.
   • TSMC and Intel's 14nm Tri-Gate Technology: Intel's ability to compete with TSMC in the FPGA market is a key factor. The use of Intel's 14nm Tri-Gate Technology could be a differentiator and impact the stock price.
5. Conclusion: Intel's decision to spin off Altera and go public is a strategic move that could positively impact its stock price in the short to long term. The market's positive reaction, the potential for increased liquidity and valuation, and the focus on unlocking shareholder value are all factors that could contribute to a favorable performance of Intel's stock. However, external factors such as market perception and competition will also play a significant role in determining the stock's ultimate performance.