Intel’s New CEO Wastes No Time—Altera Stake Sale Kicks Off Turnaround

​Intel’s new chief executive, Lip-Bu Tan, is wasting no time shaking up the chipmaker’s strategy. His first big move? Offloading a majority stake in Altera, a division Intel bought for $16.7 billion back in 2015.

Tan announced the sale of a 51% stake in Altera to private equity firm Silver Lake, valuing the business at just $8.75 billion—a sharp haircut from the original acquisition price. Still, analysts aren’t sounding the alarm. Instead, they see it as a smart first step in Tan’s long-term plan to streamline Intel and focus on its core strengths.

Altera builds field-programmable gate arrays (FPGAs)—customizable chips used in everything from defense systems to data centers. While the technology has long-term potential, revenue has slid in recent years, making Altera a prime candidate for strategic repositioning.

Intel will retain a 49% stake and maintain a close relationship with Altera through its foundry business. Analysts say the deal will give Intel financial breathing room while letting Altera’s new management—led by Marvell exec Raghib Hussain—attempt a turnaround.

“We think this move helps both Intel and Altera,” said Stifel analyst Ruben Roy. “FPGAs aren’t core to Intel’s current turnaround, but they’re still valuable. This deal gives Altera more autonomy and better positioning.”

Intel didn’t disclose whether it will take an impairment charge on the deal, though the sale clearly values Altera well below what Intel originally paid.

Still, the message from Tan is clear: he’s ready to move quickly, take bold action, and re-center Intel’s strategy around areas with more immediate upside.

Intel shares jumped nearly 3% following the announcement. All eyes now turn to the company’s April 24 earnings call, where Tan is expected to outline more of his vision for a leaner, sharper Intel.







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