NEW YORK (TheStreet) -- Shares of Altera (ALTR) are gaining by 3.68% to $48.71 in mid-morning trading Friday, on reports that Intel (INTC), the world's largest chip maker, is near a deal to buy Altera for $15 billion, the New York Post reports.
The price could be as high as $54 a share as Intel has been looking for growth due to the struggling personal-computer market, the publication noted. One of the reasons as to why PC-chip sales are declining is that nowadays, consumers are relying more and more on tablets and smartphones.
But acquiring Altera could help Intel expand its most profitable business, which is supplying server chips used in data centers, the New York Post highlighted.
Altera is a semiconductor company that designs and sells programmable logic devices, mega functions, and development software.
Separately, TheStreet Ratings team rates ALTERA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTERA CORP (ALTR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."