Intel shares rallied more than 5% late Thursday after the company said Apple was buying its smartphone modem chip business for $1 billion. The company also reported second quarter results and a forecast that exceeded Wall Street expectations.
Intel said Apple will acquire the majority of Intel’s smartphone modem business, valued at $1 billion. About 2,200 Intel employees will join Apple, as well as intellectual property, equipment and leases. The deal is expected to close in the fourth quarter of this year.
Intel also reported a profit of $4.2 billion, or 92 cents a share, on revenue of $16.5 billion, compared to a profit of $5 billion, or $1.05 a share, on sales of $17 billion in the year-ago quarter. Adjusted profit was $1.06 a share.