Intel Corporation is reportedly contemplating offloading a minority stake in its Altera unit, potentially raising billions of dollars. According to sources cited by CNBC, this deal could value Altera at approximately $17 billion. Intel acquired Altera back in 2015 for $16.7 billion. In recent times, Intel has faced a sharp decline in its stock price, with shares plummeting by over 50% this year as the company struggles to maintain its market position. This decline is largely attributed to losing competitive ground to NVIDIA Corp in the AI chip sector and Advanced Micro Devices, Inc. in the PC and data center markets.

In an effort to stabilize its financial footing and reassure investors, Intel is considering this strategic move to bolster cash for its semiconductor fabrication projects. Despite previously highlighting the strategic importance of Altera, CEO Pat Gelsinger acknowledges the necessity to explore such options. Intel has engaged with private equity and strategic investors to possibly sell a minority share in the Altera business, underscoring the tough market conditions it currently faces.

The consideration to sell comes amidst added scrutiny internationally, particularly in China. The Cybersecurity Association of China has recommended a review of Intel products, citing national security concerns, which could further strain Intel amidst ongoing U.S.-China trade tensions. Simultaneously, Intel is partnering with Advanced Micro Devices to foster an x86 Ecosystem Advisory Group, hoping to counterbalance market pressures and regain footing.

The plunge in Intel’s market valuation is notable, with its market cap falling under $100 billion, a significant drop not seen for over a decade. While Intel faces these challenges, competitors like Oracle Corp have been advancing in AI and cloud technologies. Intel's share price saw a slight recovery, closing at $22.44, a modest increase of 0.58% on the day. However, year-to-date figures illustrate a broader loss, with Intel's shares declining by 53.05%. This potential sale of a stake in Altera reflects Intel's broader strategy to navigate a rapidly changing tech landscape and maintain its independence amidst mounting pressures.