Intel Reportedly Considers Selling Minority Stake In Altera Unit For $17B Amid Market Challenges, Losing Ground To Nvidia And AMD As Stock Plummets Over 50% This Year - Intel (NASDAQ:INTC), Advanced M
- Intel is contemplating a sale of a minority stake in its Altera unit, which it acquired for $16.7 billion in 2015.
- The company has experienced a significant decline in its stock price, losing over 50% in value this year due to increased competition from NVIDIA and AMD.
- The potential sale aims to generate funds for Intel's semiconductor ambitions and stabilize investor confidence during a challenging market period.
In the United States, Intel Corp. is reportedly considering selling a minority stake in its Altera unit, which it initially acquired for $16.7 billion in 2015. The deal may value Altera at approximately $17 billion. This potential divestiture reflects Intel's ongoing struggles in a highly competitive semiconductor landscape where it has seen a substantial loss of market share. The company's stock has plummeted by over 50% this year, most notably due to intense competition from NVIDIA and AMD in AI chips and the data center market. Intel's CEO, Pat Gelsinger, has emphasized the significance of the Altera business for the company's future. However, the recent downturn has led Intel to explore options, including discussions with private equity and strategic investors. The aim is to secure funds not only for the Altera unit but also to further develop its semiconductor fabrication operations, which are vital for Intel's long-term strategy. Moreover, the company faces additional pressures, including scrutiny in China, where concerns about product security amidst escalating U.S.-China trade tensions have arisen. Such international challenges compound Intel's market difficulties, underscoring the need for decisive action. Ultimately, the decision to contemplate a stake sale in the Altera business represents a significant shift in Intel's strategy aimed at reassuring stakeholders and navigating a competitive technology landscape. Ensuring financial stability and regaining investor confidence will be crucial as the company seeks to recover its market position.