Intel (INTC.US) is considering selling Altera, and Marvell (Marvell.US) is seen as a potential buyer.
1min read Intel (INTC.US) is reportedly exploring the sale of its programmable chip division Altera as part of a broader cost-cutting plan, with Marvell (MRVL.US) seen as a potential buyer. Analysts at Raymond James noted such a deal could be beneficial to Marvell. The Raymond James analysts, led by Srini Pajjuri, said: "From a strategic perspective, a potential acquisition would help Marvell diversify into industrial or defense markets and strengthen its strong presence in the telecom and data center markets." "The higher gross margins associated with FPGA products are also attractive to Marvell, especially as AI custom chips become a larger part of its revenue." Raymond James estimated Altera's current market value to be between $18bn and $22bn. Intel bought Altera for $16.7bn in 2015. In 2023, Altera generated revenue of $2.9bn, but this fell by about $700mn in the first half of 2024. Raymond James' analysts modelled Altera's total revenue to be $1.9bn in 2025. Pajjuri said: "While Intel may need to pay some capital gains tax, a direct sale looks feasible and should significantly strengthen Intel's balance sheet." For Marvell, such a deal would be "neutral or slightly accretive" to its earnings and provide "modest synergies."