Intel Corporation (INTC, Financial) has agreed to sell 51% of its stake in its programmable chip unit, Altera, for $4.46 billion to Silver Lake Management. This transaction values Altera at approximately $8.75 billion and represents the first significant strategic move under the leadership of Intel's new CEO, Lip-Bu Tan.
The sale is part of Intel's broader strategy to shift its focus back to its core x86 businesses, as it aims to realign its operations amidst a challenging market environment. JPMorgan has maintained an Underweight rating on Intel with a price target of $23, acknowledging the deal as a positive step towards the company's transformation, though it also highlights the ongoing difficulties Intel faces during this period of restructuring.
