Intel Corporation INTC recently announced that it has entered into a definitive agreement to sell a 51% ownership stake in Altera business to Silver Lake, a prominent global technology investment firm. The deal, which values Altera at $8.75 billion, marks a significant strategic move for Intel, establishing Altera as an independent entity and the largest pure-play FPGA (field-programmable gate array) semiconductor solutions provider. Intel will continue to hold the remaining 49% ownership stake in Altera to help contribute to its future growth.

Headquartered in San Jose, CA, Altera has been at the forefront of driving FPGA innovations for more than four decades, serving critical sectors such as industrial, communications, data centers, defense, aerospace and government. The company’s flexible and reliable programmable solutions, along with its software and development tools, have positioned it as a key player in accelerating customer innovation. 

This strategic investment by Silver Lake will likely help the company expedite product innovation and expand into diverse AI-driven markets like edge computing, robotics and next-gen communications. The transaction is subject to the fulfillment of customary closing conditions and regulatory approvals and is expected to close in the second half of 2025. 

Does INTC Stock Stand to Gain From the Sale?

From an industry perspective, the deal represents a significant consolidation within the industry, where companies are reshaping their portfolios and strategies to adapt to changing market conditions and technological advancements. The transaction is part of Intel’s ongoing strategy to sharpen its operational efficiency, lower expense structure and strengthen its balance sheet while unlocking value from its non-core assets. 

The partnership also creates synergies between Intel and Silver Lake. Intel will continue to supply Altera with U.S.-based foundry services, ensuring ongoing demand for its manufacturing capabilities. This aligns with Intel’s long-term vision of becoming a leading global foundry while maintaining strong customer and ecosystem relationships, which augurs well for long-term growth.

INTC’s Stock Price Performance

Shares of Intel have plunged 44% over the past year against the industry’s growth of 18.4%.

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INTC’s Zacks Rank and Key Picks

Intel currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital designs and develops a wide range of advanced technology solutions, which are used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

CommScope Holding COMM currently flaunts a Zacks Rank #1. It has a long-term growth expectation of 19.37%.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. Since its inception in 1976, the company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration. CommScope currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions.
 
U.S. Cellular USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%. U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer customers the best wireless experience by providing a superior-quality network and national coverage. U.S. Cellular is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

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