Intel announced Monday it will sell a 51% stake in its Altera business to private equity firm Silver Lake, valuing the programmable chip unit at $8.75 billion. Intel shares rose 3.9% in premarket trading on the news.
The deal provides Intel with needed cash as it cuts costs and invests in becoming a contract manufacturer, while establishing Altera as an independent entity focused on FPGA semiconductor solutions. Intel will retain a 49% stake in the business.
Raghib Hussain, formerly of Marvell, will succeed Sandra Rivera as Altera's CEO effective May 5, 2025. The transaction is expected to close in the second half of 2025.
Intel originally acquired Altera for nearly $17 billion in 2015. For fiscal year 2024, Altera generated $1.54 billion in revenue with a GAAP operating loss of $615 million, though it posted a non-GAAP operating income of $35 million.
Intel (D1)
The stock is trading 3.9% higher in premarket, with bulls aiming for a retest of the 50-day SMA at $21.73. Source: xStation
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