The San Jose, California-based semiconductor company could confidentially file for an IPO in the coming weeks, with a stock market debut potentially taking place as early as this year, the sources said.
The proposed offering, however, remains subject to change, including its timing and size, as market conditions and investor demand could influence the final structure of the deal.
Silver Lake has selected Barclays, Citi, JPMorgan and Morgan Stanley as potential underwriters for the offering, although the final order of the banks has yet to be determined, according to three people familiar with the discussions.
The sources requested anonymity because the preparations are confidential.
Altera, Barclays, JPMorgan, Morgan Stanley and Silver Lake declined to comment. Citi and Intel did not immediately respond to requests for comment.
If completed at the proposed scale, the transaction would rank among the largest semiconductor IPOs in recent years and would represent a significant return to the public markets for Altera, which was acquired by Intel in 2015.
The offering would come after Arm Holdings' 2023 market debut, which raised nearly $5 billion and remains one of the biggest semiconductor listings in recent years.
IPO market gathers momentum
Altera's potential listing comes as the US IPO market experiences a powerful resurgence, with a series of large offerings helping to drive proceeds towards record levels.
US initial public offerings, excluding special-purpose acquisition companies, raised $137 billion through the end of August, according to Dealogic data.
Several major listings are also reportedly in the pipeline, suggesting that companies and their financial sponsors are increasingly willing to test investor appetite following a period of subdued IPO activity.
Anthropic is among the companies reportedly considering a major public offering. According to people familiar with the matter, the artificial intelligence company could go public as soon as October and could command a valuation of about $100 billion.
Such a transaction would be significantly larger than several recent technology listings and could help push US IPO proceeds beyond the approximately $156 billion raised in 2021, according to Dealogic.
Against this backdrop, Altera's proposed offering would give investors another opportunity to gain exposure to the semiconductor sector, particularly the market for programmable chips used across data centres, telecommunications and industrial applications.
AI and robotics provide growth prospects
Altera develops programmable chips that can be adapted for a wide range of applications, from telecommunications equipment and industrial machinery to aerospace, defence and artificial intelligence systems.
Its products are also used in data centres and telecommunications networks, areas that have attracted significant investment as demand for computing capacity continues to rise.
The company has increasingly identified artificial intelligence and robotics as important areas for future growth.
Chief Executive Raghib Hussain previously indicated that Altera was preparing for a potential public listing as it sought to expand its presence in those markets.
In a July interview with Reuters, Hussain said the company was “preparing for an eventual public listing” as it pursued growth in artificial intelligence and robotics markets.
An IPO would give Altera access to public equity markets at a time when investor interest in companies exposed to AI infrastructure and advanced computing remains strong.
It could also provide Silver Lake and Intel with an opportunity to realise part of the value created since the semiconductor business was separated from Intel's operations.
From Intel acquisition to standalone company
Intel acquired Altera for about $16.7 billion in 2015 as part of an effort to expand its portfolio of programmable semiconductor products.
The company subsequently became fully standalone last September after Intel agreed to sell a 51 per cent stake to Silver Lake for $4.46 billion.
The transaction valued Altera at approximately $8.75 billion, with Intel retaining a 49 per cent stake.
Silver Lake committed about $3.3 billion in equity to the transaction alongside Abu Dhabi-based investment firm MGX, which participated as a co-investor.
A successful IPO could therefore represent a substantial increase in Altera's valuation compared with the price established in last year's transaction, although the eventual market value would depend on investor demand and broader market conditions.
The proposed listing also comes as Intel undertakes a major restructuring under Chief Executive Lip-Bu Tan.
Intel's restructuring adds backdrop
Since taking over as Intel's chief executive in 2025, Tan has pursued measures aimed at restoring the company's growth prospects, strengthening its finances and rebuilding investor confidence.
The strategy has included cost reductions, asset sales and efforts to secure additional sources of capital as Intel seeks to compete more aggressively in semiconductor manufacturing and artificial intelligence.
The US government also agreed last year to acquire a 9.9 per cent stake in Intel through an $8.9 billion investment linked to semiconductor and defence funding previously awarded to the company.
Intel has separately turned to public markets to support its manufacturing expansion and AI ambitions.
In August, the chipmaker raised about $20 billion through a follow-on stock offering, one of the largest equity offerings by a US technology company, with the proceeds earmarked for capital expenditure and working capital.
For Intel, the Altera IPO could provide an additional indication of the value investors place on its remaining stake in the programmable-chip business while allowing the company to maintain exposure to a business with applications spanning AI, data centres, communications and defence.
For Silver Lake, meanwhile, a successful listing would offer a potential exit route and a chance to crystallise gains on an investment made only a year ago.
The proposed Altera offering therefore comes at the intersection of three major trends: a recovering US IPO market, renewed investor appetite for semiconductor and AI-related companies, and Intel's continuing effort to reshape its business and strengthen its balance sheet.
While the final size and timing of the offering remain uncertain, a successful listing would make Altera one of the most closely watched semiconductor companies to return to public markets since its acquisition by Intel more than a decade ago.