INTC Stock Attracts Buyers As Intel Trims Altera, to Focus on Core Chip Foundry
Intel shares are still showing demand near the bottom, as it gains 4.5% on the day after the 51% sell of Altera to focus on chip foundry.
Intel shares are still showing demand near the bottom, as it gains 4.5% on the day after the 51% sell of Altera to concentrate on chip foundry.
Intel trimming the side business
Intel Stock Steadies Near Bottom of Range, Shows Signs of Recovery
Since dropping from the $30s into the $20s in July of last year, Intel Corporation (NASDAQ: INTC) has been stuck in a volatile sideways range, fluctuating between roughly $18 and $27. After months of uncertainty, the stock is now hovering near the lower end of that band, presenting what many investors see as a potential buying opportunity.
Last week’s sharp rebound—nearly 20%—was fueled by a shift in U.S. trade policy. The White House temporarily paused most tariffs for countries excluding China, and added on Sunday that electronics tariffs would be capped at 20% for at least a month or two. This dovish stance reignited optimism across equity markets and gave a noticeable boost to chipmakers like Intel.
Intel Chart Daily – Displaying Demand Near the Bottom of the Range
At Monday’s opening bell, INTC shares jumped 5%, with prices holding firm around 4.5% higher in early trading, trading above $20. While some tech giants saw their gains fade, Intel has held onto most of the momentum, suggesting investor confidence is holding up well in this more supportive policy environment.
Semiconductor Sector Growth and Intel’s Position
According to final 2024 figures released by Gartner, global semiconductor revenues surged to $656 billion, marking a 21% increase from 2023. Intel maintained a strong third-place ranking among global chipmakers—an encouraging sign for shareholders betting on the company’s turnaround.
Intel Sells Majority Stake in Altera, Refocuses on Core Foundry Business
In a strategic move to refocus its operations, Intel announced today that it is selling 51% of its Altera programmable chip unit to technology-focused investment firm Silver Lake. The deal values Altera at $8.75 billion and marks a significant pivot in Intel’s ongoing transformation under its new leadership.
While Intel acquired Altera back in 2015, the business hasn’t met performance expectations in recent years. By offloading the majority stake, Intel will free up resources and focus more sharply on its core chip foundry segment—an area central to its long-term growth strategy. Importantly, Intel will retain a 49% stake, allowing it to participate in Altera’s future success while shedding the operational burden.
Following the announcement, analysts at Needham maintained a “Hold” rating on the stock, acknowledging the deal’s positive implications for Intel’s balance sheet and strategic clarity.
Outlook: Can Intel Sustain This Momentum?
With trade pressures easing and Intel taking deliberate steps to streamline its business, the company may be poised for a stronger second half of the year. The combination of sector-wide growth, corporate restructuring, and supportive policy signals may provide the catalyst INTC needs to challenge the upper end of its current trading range. While the technical ceiling around $26–$27 remains intact, this recent rally could mark the start of a more sustained move higher if momentum continues.
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