Altera, a semiconductor manufacturer backed by Intel, filed confidentially for a US initial public offering with plans to debut as soon as later this year. The company is targeting $2 billion in IPO proceeds, positioning it as one of the largest recent debuts for an American semiconductor firm. Only Arm’s offering in 2023 and Cerebras’ May debut raised more capital among recent semiconductor IPOs.
The company’s trajectory reflects a complex corporate history. Intel acquired Altera for $16.7 billion in 2015, but the unit subsequently lost hundreds of millions of dollars. Intel divested a 51% stake to private equity firm Silver Lake last year at approximately half the original acquisition valuation. Altera produces programmable semiconductors used across telecommunications, industrial automation, defense systems, and data center applications, where they complement central processing units.
Altera’s management has communicated optimism about the company’s recent performance. The company’s CEO stated in July that Altera expects to grow revenue by more than 20% for the second consecutive year and has more than doubled operating income. However, during its final full year under Intel ownership in 2024, parent company financial disclosures showed Altera’s revenue declined 48% to $1.5 billion.
Altera’s IPO filing arrives amid an exceptionally active market for initial public offerings. Over $160 billion has been raised for US IPOs so far this year, excluding special purpose acquisition company launches, according to available market data. While SpaceX’s $85 billion offering accounts for a substantial portion of that total, the volume of filings and completions has also accelerated significantly. Through early September, 331 companies had filed for IPOs and 280 had completed their debuts, surpassing the total filings for the entire first three quarters of the prior year, which itself represented a substantial recovery from 2023 and 2024 activity levels.
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