From Nasdaq: 2025-04-18 08:09:00

Intel Corporation (NASDAQ: INTC) sells 51% stake in Altera to Silver Lake for $8.75 billion, signaling a strategic shift under CEO Lip-Bu Tan to focus on core business segments and improve financial position. While Intel retains 49% stake, the move aims to streamline operations and address past strategic challenges.

The sale comes after Intel’s 2015 acquisition of Altera for $16.7 billion failed to meet revenue and operating income targets. The divestment allows Altera to operate independently as a pure-play FPGA provider under CEO Raghib Hussain. The transaction, set to close in 2025, will see Intel deconsolidating Altera’s financials.

Intel’s decision to sell Altera majority stake is part of a broader turnaround strategy led by Lip-Bu Tan. The move simplifies Intel’s structure, freeing up resources to focus on core products and the Intel Foundry Services division. The deal injects vital capital of $4.46 billion for Intel’s growth plans but carries risks in a fiercely competitive market.

Investors react cautiously to Intel’s Altera sale, with stock trading at $19.88 amid analyst skepticism. Despite 32 analysts issuing a Reduce rating, the average price target of $25.54 suggests potential upside. Intel faces challenges in executing its turnaround but remains a high-risk, high-reward investment opportunity in the market’s view. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This decrease was attributed to concerns over rising inflation rates and uncertainty surrounding the conflict in Ukraine.

2. In other news, the latest unemployment report showed a decrease in jobless claims for the third consecutive week. This positive trend was welcomed by economists, who are hopeful that the labor market will continue to recover in the coming months.

3. The Biden administration announced a new initiative to increase access to affordable housing for low-income families. The plan includes investing $318 million in federal funds to support the construction of new housing units and provide rental assistance to those in need.

4. On the international front, tensions between Russia and Ukraine continue to escalate, with both sides accusing each other of violating ceasefire agreements. The United Nations has called for a diplomatic solution to the conflict, but the situation remains volatile.

5. Finally, a new study published in a medical journal revealed that wearing two masks can significantly reduce the spread of COVID-19. Researchers found that double-masking can block up to 90% of respiratory droplets, making it a highly effective strategy for preventing transmission of the virus.



Read more at Nasdaq: Strategic Reset Begins: Intel Sells Controlling Stake in Altera