Intel Corporation is reportedly considering selling at least a minority stake in its Altera unit, a move that could generate several billion dollars in cash for the company. Sources familiar with the situation, who chose to remain anonymous, indicated that Intel is aiming for a deal that would value Altera at approximately $17 billion. Intel had initially acquired Altera in 2015 for $16.7 billion.
Amidst a significant decline in its stock price and sustained market share losses, Intel is seeking transformative changes. The company has reached out to several private equity and strategic investors regarding Altera and has indicated the potential for a majority stake acquisition by some of these investors.
An Intel spokesperson declined to comment on the matter. This potential sale signifies a significant shift from Intel’s previous statements about Altera, as recently as last month, CEO Pat Gelsinger affirmed that the business was considered integral to Intel’s future strategy.
Previously, Intel suggested that it might monetize Altera through an IPO by 2026. However, considering strategic or private equity investments could accelerate this timeline.
Gelsinger and his team have acknowledged Intel’s challenges and stated that they are actively working to address them. Selling a stake in Altera could facilitate Intel’s focus on its semiconductor fabrication goals and reassure investors about its prospects as an independent entity.
This development coincides with Qualcomm’s expressed interest in acquiring Intel, which, if pursued, would likely face substantial regulatory scrutiny and potentially alter the competitive landscape in the semiconductor sector.
Intel’s shares have fallen by 50% this year as it has faced strong competition from Nvidia in artificial intelligence chips and has lost market share to Advanced Micro Devices in its principal PC and data center segments.
