WendyOneP
04-15

$Intel(INTC)$

Selling a majority stake in Altera at a valuation significantly lower than its 2015 acquisition price of $16.7 billion raises concerns about Intel's long-term strategy. While the immediate influx of $4.46 billion may alleviate short-term financial pressures, it also means relinquishing control over a business that could be pivotal in the growing FPGA market, especially with the rise of AI and edge computing. The move might be seen as Intel stepping back from diversification efforts, potentially narrowing its future revenue streams. Furthermore, the success of this partnership heavily relies on Silver Lake's management of Altera, introducing uncertainties that could impact Intel's residual stake. This decision might provide temporary relief but could pose challenges in the long run. ​

Intel Beats Sales! Above $40, Smooth Sailing Ahead?
Intel reported better-than-expected third-quarter sales, signaling that demand for its core x86 processors for PCs has recovered.Revenue: $13.65 billion versus $13.14 billion estimated EPS: 23 cents, adjusted, not comparable to analyst estimates The report is Intel’s first since the U.S. government became the company’s top shareholder in August with a 10% stake.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Enid Bertha
    04-21
    Enid Bertha
    Intel's book value around $23 per share.
  • Venus Reade
    04-21
    Venus Reade
    Intel trading at less than two times revenue. CEO Lip-Bu Tan leaning into foundry and AI products.
  • dong123
    04-16
    dong123
    Hmm, interesting move
Leave a comment
3
2