Intel Sells 51% Stake in Altera Unit
48 minutes ago
Shares of Intel (INTC) rose Monday morning after the chipmaker said it agreed to sell 51% of its programmable chip business Altera to private equity firm Silver Lake.
The deal values Altera at $8.75 billion, and will leave Intel with the remaining 49% ownership stake, the companies said Monday. Intel said that Raghib Hussain will be CEO of Altera, effective May 5, joining the company from his role as president of Products and Technologies at Marvell (MRVL).
“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” Intel CEO Lip-Bu Tan said.
The companies expect the deal to close in the second half of this year. Altera’s results will be removed from Intel’s quarterly consolidated financial statements once the deal is closed. The unit recorded revenue of $1.54 billion and adjusted operating income of $35 million in fiscal 2024.
The news follows speculation of a possible deal for a stake in Altera and other parts of Intel’s business earlier this year.
Intel shares were up about 3% in recent trading. The chipmaker is set to report first-quarter results after the market closes on April 24.
Pfizer Halts Development of Obesity Drug
1 hr 27 min ago
Pfizer (PFE) said it will stop development of an oral daily weight-loss pill after a participant taking the drug in a clinical trial experienced a liver injury.
The GLP-1 receptor agonist, danuglipron, was seen as Pfizer’s potential answer to popular weight-loss treatments like Novo Nordisk’s (NVO) Ozempic and Wegovy and Eli Lilly’s (LLY) Zepbound and Mounjaro, which are injected weekly.
U.S.-listed shares of Novo Nordisk and Lilly stock were each up about 3% in recent trading, while Pfizer shares were 1% higher.
Danuglipron “met key pharmacokinetic objectives” in a Phase 3 trial but one patient “experienced potential drug-induced liver injury,” Pfizer said, adding that the injury “resolved” after treatment was discontinued.
Pfizer Chief Scientific Officer Chris Boshoff said the company would continue to develop an “oral GIPR antagonist candidate and other earlier obesity programs.”
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Pfizer shares are down about 16% since the start of the year, about double the decline of the S&P 500 over the period.
The drugmaker plans to report its first-quarter earnings on April 29.
Gold Levels to Watch After Recent Record Highs
2 hr 24 min ago
Gold (XAUUSD) is losing ground this morning after hitting record highs last week as investors flocked to the safe-haven asset amid ongoing uncertainty over tariffs and their impact on the global economy.
The precious metal remains supported as concerns about an intensifying global trade war continue to place downward pressure on the dollar and Treasurys amid diminishing faith in the U.S. as a reliable trading partner.
Gold’s price, which soared 6% last week and trades 23% higher since the start of the year, seesawed Sunday evening as investors digested news that recently announced U.S. tariff exemptions on smartphones, computers, and semiconductors could be temporary, with the president later pledging a national security trade investigation into the chip sector.
After a brief retracement to the 50-day moving average and lower trendline of an ascending channel, gold’s price has continued its strong uptrend, breaking out above the pattern in Friday’s trading session.
However, despite the commodity’s move into price discovery mode, a bearish divergence has formed between the relative strength index (RSI) and price, indicating easing buying momentum.
Investors should monitor key support levels on gold’s chart around $3,170, $3,048, $2,955, and $2,858.
Read the full technical analysis piece here.
Major Index Futures Point to Higher Open
3 hr 22 min ago
Futures tied to the Dow Jones Industrial Average were up 1.1%.
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S&P 500 futures rose 1.7%.
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Nasdaq 100 futures added 2%.
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