• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

Intel Dumps Altera at a Huge Loss todayheadline

April 15, 2025
in Business & Finance
Reading Time: 3 mins read
A A
0
3
SHARES
6
VIEWS
Share on FacebookShare on Twitter


Intel (INTC 2.91%) announced on Monday that it had agreed to sell a 51% stake in Altera, the FPGA specialist it acquired in 2015, to investment firm Silver Lake. While Intel will retain a 49% stake in the company, it will relinquish operational control as Altera becomes an independent, pure-play FPGA provider.

Intel acquired Altera nearly a decade ago as part of a plan to capture more spending in the data center. That plan has largely been a failure. Altera’s revenue in 2024 was lower than in 2014, likely due to a combination of a tough field programmable gate array (FPGA) market and poor execution on the part of Intel. On top of Altera’s lackluster performance, Intel has lost server CPU market share to AMD and watched as data center spending shifted to AI accelerators.

With a renewed turnaround effort underway, Intel needs to both simplify its business and raise cash to continue investing in its manufacturing operations. This Altera transaction accomplishes both, although Intel is eating a multibillion-dollar loss in the process.

A slashed valuation

Intel’s acquisition of Altera in 2015 was valued at $16.7 billion. The deal with Silver Lake values the FPGA company at just $8.75 billion. A major haircut certainly makes sense. Altera generated revenue of $1.54 billion and adjusted operating income of just $35 million in 2024. That compares to revenue of $1.93 billion and operating income of $543 million in 2014 .

Part of the problem is almost certainly a difficult market environment. AMD acquired fellow FPGA company Xilinx in 2022, and things have been going sideways there as well. AMD’s embedded segment, which is primarily Xilinx, suffered a 33% revenue decline in 2024 to $3.6 billion due to mixed end market demand and excessive customer inventory levels.

Another aspect of the problem was likely Intel itself. As part of Intel, Altera may not have received the attention or resources it needed to thrive. This is a challenge with any acquisition, and it’s one reason why the optimistic assumptions and forecasts offered by acquiring companies should always be taken with a grain of salt.

Intel is keeping a 49% stake in Altera, meaning that it will benefit from any upside if Altera manages to turn things around. With a minority stake, Intel won’t be involved in day-to-day operations. That’s a good thing, given its track record over the last decade.

Two birds with one stone

While Intel will take a large loss on its sale of a majority stake in Altera, the deal accomplishes two things. First, it simplifies Intel’s business at a critical time for the semiconductor giant. Intel has been losing market share in its core CPU businesses, struggling to gain a foothold in the AI accelerator market, and pursuing a capital-intensive plan to become a leading foundry services provider. The company needs as few distractions as possible as it looks to right the ship. Altera will continue to be an Intel foundry customer, so its success as an independent company will benefit Intel in multiple ways.

Second, Intel will raise some much-needed cash. The company has been pouring capital into new factories as it worked toward bringing its critical Intel 18A process node to production. Now that Intel 18A is ready, the company needs to scale it up. With a backdrop of a trade war potentially hurting demand for PCs and servers, and thus Intel’s CPUs, fortifying the balance sheet is more important than ever.

Intel CEO Lip-Bu Tan, who took the helm in March, is getting off to a quick start as he looks to revitalize the ailing semiconductor giant. Getting Altera off the company’s plate less than a month after taking charge is a good first step, and more changes are likely to come as Tan refocuses Intel on its core businesses. While Intel is taking a big loss on Altera, separating the two companies looks like the right move.

Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy.

Tags: AlteradumpshugeIntelLosstodayheadline
Previous Post

Bank of America profit rises on trading strength todayheadline

Next Post

Maldives bans Israelis to protest Gaza war

Related Posts

Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
3
Germany's new chancellor, Merz, to meet Trump in Washington on Thursday

Germany's new chancellor, Merz, to meet Trump in Washington on Thursday todayheadline

June 1, 2025
3
Next Post
Maldives bans Israelis to protest Gaza war

Maldives bans Israelis to protest Gaza war

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Exclusive: Hamas offers to release ten captives over sixty days in three stages

Exclusive: Hamas offers to release ten captives over sixty days in three stages

June 1, 2025
Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
Germany's new chancellor, Merz, to meet Trump in Washington on Thursday

Germany's new chancellor, Merz, to meet Trump in Washington on Thursday todayheadline

June 1, 2025
ET logo

Texas softball ace Teagan Kavan pitches a complete-game win over Oklahoma in Women’s College World Series hours after beloved grandmother’s death todayheadline

June 1, 2025

Recent News

Exclusive: Hamas offers to release ten captives over sixty days in three stages

Exclusive: Hamas offers to release ten captives over sixty days in three stages

June 1, 2025
3
Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
3
Germany's new chancellor, Merz, to meet Trump in Washington on Thursday

Germany's new chancellor, Merz, to meet Trump in Washington on Thursday todayheadline

June 1, 2025
3
ET logo

Texas softball ace Teagan Kavan pitches a complete-game win over Oklahoma in Women’s College World Series hours after beloved grandmother’s death todayheadline

June 1, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Exclusive: Hamas offers to release ten captives over sixty days in three stages

Exclusive: Hamas offers to release ten captives over sixty days in three stages

June 1, 2025
Elon Musk’s court fights to outlast his time at White House

Elon Musk’s court fights to outlast his time at White House todayheadline

June 1, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co