Intel Corp. INTC is considering selling a minority stake in its Altera unit to raise funds.
What Happened: Intel aims to sell part of its Altera unit, which it bought for $16.7 billion in 2015. The unit is valued at about $17 billion, according to CNBC.
Intel’s stock has dropped significantly, prompting the company to discuss selling a majority stake in Altera with private equity and strategic investors.
CEO Pat Gelsinger previously underscored the unit’s importance, but now Intel is looking to sell to support its semiconductor goals and reassure investors.
See Also: Airbus Plans to Cut 2,500 Jobs Amid Boeing Strike
Intel’s shares have fallen 50% this year, primarily due to competition from NVIDIA Corp NVDA in AI chips and Advanced Micro Devices, Inc. AMD in PCs and data centers.
Intel has not commented on the matter.
Why It Matters: The potential sale is crucial as Intel navigates market challenges and scrutiny in China, where concerns over product security have been raised amid US trade issues.
Intel has been trying to tackle market challenges, including partnering with AMD to establish an advisory group.
Currently, Intel’s stock is down over 53% this year, with its market cap below $100 billion for the first time in over a decade, while Oracle Corp ORCL excels in AI and cloud domains.
Price Action: Intel closed at $22.44, up 0.58% for the day, and rose 0.18% in after-hours trading. Year-to-date, shares have declined 53.05%, per .
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This article was created using Benzinga Neuro and edited by Kaustubh Bagalkote
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