Intel shares soar 16% on speculation of investor interest in Altera

Yesterday’s trading session ended with a 16% increase in Intel shares, which is the highest daily gain in the past five years. This dynamic was facilitated not only by rumors about TSMC being involved in saving the American company, but also by investors’ interest in the assets of its subsidiary Altera.

Image Source: Intel

According to Bloomberg, Silver Lake Management is currently negotiating a major stake in Altera, an Intel subsidiary that it acquired in 2015 for $17 billion. Even the previous management tried to find investors for Altera and take the company to an IPO, and Intel’s current leaders are no strangers to such ideas. It is too early to talk about the success of the negotiations with Silver Lake, and the size of the Altera stake that is up for sale is also not specified.

Rumors of investor interest in Altera’s assets have been circulating since last year, but at that stage, rival Lattice Semiconductor, which also develops programmable components, was mentioned among potential acquirers. Earlier, it was reported that investors value Altera’s capitalization at no more than $9 billion. Cash-strapped Intel is unlikely to like this, but it doesn’t have much choice.