Intel Corp. is considering selling a minority stake in its Altera unit to raise funds due to financial challenges, as its stock has dropped 50% this year and it is losing market share in the semiconductor sector. They’re looking for investments from private equity and firms like Qualcomm.
Intel aims to value Altera at $17 billion, slightly above the $16.7 billion purchase price nine years ago. This decision is a major change after CEO Pat Gelsinger emphasized Altera’s significance for Intel’s future.
The potential stake sale is part of a strategy to cope with market difficulties and geopolitical issues, especially regarding China. Despite funding from the CHIPS Act, Intel is facing manufacturing delays and struggles with advances in artificial intelligence, contributing to a 55% stock decline this year.
Looking ahead to a 2026 IPO, Intel is preparing to monetize Altera and secure strategic investments to enhance its semiconductor efforts. This could also free resources for its main operations.
Recently, Apollo Global Management has shown interest in investing $5 billion in Intel, which was once named the world’s most valuable company.
Additionally, Intel’s Foundry division has signed a billion-dollar deal with Amazon to create custom chips, strengthening its partnership with Amazon Web Services (AWS).
