Intel shares are rising after reports it could sell a stake in its Altera business

Key Takeaways

• Intel is reportedly looking for investors to take a minority stake in its Altera programmable chip manufacturing division.

• CNBC said Intel is looking for a valuation of about $17 billion for its stake in Altera.

• Intel bought Altera in 2015. It launched it as a standalone company in February with plans to eventually pursue an initial public offering.

Intel (INTC) shares rose Friday, lifted by indications that it is seeking a major outside investment in its Altera programmable chip manufacturing unit.

CNBC Thursday reported late Thursday that the company is looking to sell a minority stake in Altera, which values ​​the company at about $17 billion. Intel bought Altera in 2015 for $16.7 billion and launched it as a standalone company in February, with the intention of spinning it off through an initial public offering (IPO).

Intel did not immediately respond Investopedias request for comment.

Intel has taken steps to straighten out its finances, including exploring the sale of some of its various divisions, although nothing has come to fruition. The stock, recently up more than 1%, has lost more than half its value this year.

CNBC noted that the company contacted several private equity and strategic investors this week about Altera. It added that Intel even discussed the possibility that these investors could take a majority stake in the company.

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