Intel is reportedly considering selling a minority stake in its Altera unit, potentially raising billions of dollars for the company.
Altera, which Intel acquired for $16.7 billion in 2015, could now be valued at around $17 billion, according to sources.
Intel’s move comes after significant losses in both market share and stock value, prompting the company to explore new strategies for recovery.
The chipmaker has approached private equity firms and strategic investors with the possibility of selling a stake in Altera. Some investors have been informed that a majority stake could also be available.
This marks a shift from Intel’s previous stance, as CEO Pat Gelsinger had recently emphasized Altera’s importance to the company’s future.
While Intel had previously considered taking Altera public by 2026, selling a stake would expedite their plans.
The company hopes the move will help it focus on its semiconductor fabrication goals and reassure investors about its future.
This potential sale comes amid increased competition from companies like Nvidia in the AI chip market and Advanced Micro Devices in the PC and data center sectors.
Another twist to the situation is Qualcomm’s reported interest in acquiring Altera. Such a deal would likely face significant regulatory hurdles but could transform the semiconductor landscape if approved.
Despite Intel’s challenges, including a 50% drop in stock value this year, the company’s shares rose slightly following the news.
The decision to sell part of Altera could be a strategic step toward stabilizing Intel and positioning it for future growth.