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Thursday evening the New York Post reported that the Intel-Altera deal could happen "as early as next week." It was the latest rumor of a merger between the two companies, the first coming via The Wall Street Journal March 27.
Friday's report had Intel Corp. (Nasdaq: INTC) stock up 1.46% to $34.51 by midday.
Wall Street clearly approves of the deal. INTC stock is up more than 14% since word of a possible deal first broke. That's unusual for an acquiring company, which typically sees its stock stay flat or drop a little.
But Altera would give Intel a boost in the one area with the most potential to grow Intel's business…
These Sales Are the Key for Intel Stock
An Altera acquisition would boost Intel's data center segment. Data center revenue was up 19% in Intel's most recent quarter, while revenue from its sales of PC processors was flat.
You see, Intel is in the middle of a transition from earning most of its profits from the sales of PC chips to earning most of its profits from its data center business. Just four years ago, Intel's Data Center Group (DCG) contributed 30% of the company's profits. In Q1 of 2015, that had grown to 50%.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.