Intel Corp. ( INTC ) is reportedly considering selling a minority stake in its Altera unit to raise several billion dollars.

What Happened: Intel ( INTC ) is looking to sell a minority stake in its Altera unit, which it acquired for $16.7 billion in 2015, reported CNBC, citing people familiar with the matter. The deal is expected to value Altera at around $17 billion.

Intel ( INTC ) has been experiencing a significant drop in its stock price and a prolonged period of market share losses. The company has been reaching out to private equity and strategic investors to discuss the potential sale of a majority stake in the Altera business.

Intel’s CEO, Pat Gelsinger, had previously emphasized the importance of the Altera business to Intel’s future. However, the company is now considering selling a stake in Altera to fund its semiconductor fabrication ambitions and reassure investors of its future as an independent company.

See Also: As Boeing Workers Enter Second Month Of Strike, Rival Airbus Reportedly Plans To Cut 2,500 Jobs

Intel ( INTC ) shares have plummeted by 50% this year, largely due to losing ground to NVIDIA Corp ( NVDA ) in AI chips and Advanced Micro Devices, Inc. ( AMD ) in the PC and data center market.

Intel ( INTC ) did not immediately respond to Benzinga's request for comment.

Why It Matters: The potential sale of a stake in the Altera business comes at a time when Intel ( INTC ) is facing significant challenges in the market. The company is also under scrutiny in China, where the Cybersecurity Association of China has called for a security review of Intel’s products, citing potential threats to national security amid escalating trade tensions with the U.S.

Intel ( INTC ) has been taking steps to counter its market challenges, including partnering with Advanced Micro Devices ( AMD ) to create an x86 Ecosystem Advisory Group.

Meanwhile, Intel’s stock has been struggling, down over 53% year-to-date, with its market cap dropping below $100 billion for the first time in over a decade. In contrast, Oracle Corp ( ORCL ) has been making significant strides in the AI and cloud space.

Price Action: Intel’s stock closed at $22.44 on Thursday, up 0.58% for the day. In after-hours trading, the stock rose 0.18%. Year to date, Intel ( INTC ) shares have declined 53.05%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote