So it is now looking like chip stock Intel (INTC) will indeed go through with plans to sell Altera. A report from Bloomberg makes it pretty clear, as Intel has “shortlisted” a number of potential buyout firms for its next round of bidding. The news was good enough for investors, who sent shares up nearly 3% in Friday afternoon’s trading.
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There are several private equity firms looking to land Altera, the report noted. Silver Lake Management and Francisco Partners are both looking to throw their hat in the ring, and Lattice Semiconductor Corp. (LSCC) is also interested. Bain Capital (BCSF) and Apollo Global Management (APO) are also poised to toss in their bids. However, Lattice has a total market value of $8 billion, which will make taking on the private equity firms a challenge without some kind of help, the report noted.
Naturally, this does not mean a sale will actually happen. The report noted that the bidders have until the end of January 2025 to finalize their bids, and Intel may ultimately decide that none of the bids are worth pursuing. But this does make it clear that Intel’s plans under departed CEO Pat Gelsinger are pretty much still on the table, and going forward, despite earlier criticism about the pace of pursuing these plans.
X86S is Dead
Meanwhile, Intel also took on its current processor lineup, and tossed out the x86S initiative, noted a report from Tom’s Hardware. The move was part of a larger project, reports noted, to “de-bloat the x86 instruction set by developing a simplified 64-bit mode-only x86S version.” And while Intel remains “…deeply committed to the x86 architecture,” it does need to bow to the rise of AMD (AMD) processors in the field to ensure backward compatibility and complete interoperability as well.
Finally, Intel also offered up a set of processor upgrades, noted a Forbes report, that will address several key issues and make overall performance better. First, there is the Windows 11 update, designated KB5044384. Some new BIOS updates for Z890 motherboards step in as well, alongside an “updated anti-cheat driver” that will give systems new stability. The last set, however, will not hit until January 2025, with new motherboard BIOS updates.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 21 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 57.81% loss in its share price over the past year, the average INTC price target of $24.53 per share implies 25.38% upside potential.
