Raymond James analysts noted in an industry brief that such a transaction could provide a modest benefit for Marvell.

"From a strategic standpoint, a potential acquisition would help MRVL diversify into Industrial/Defense markets and beef up its already strong presence in Telco and Data Center markets," said Raymond James analysts, led by Srini Pajjuri. "Higher gross margins associated with FPGA products would also be attractive to MRVL, especially as Al custom silicon becomes a larger portion of its revenues."

However, Pajjuri also noted such a deal would likely require regulatory approval by China, which could prove problematic in the current geopolitical climate.

Raymond James estimated that Altera's current market value ranges from $18B to $22B. Intel acquired Altera for $16.7B in 2015.

Altera's revenue was $2.9B in 2023, but declined by about $700M during the first half of 2024. Raymond James' model projects Altera's revenue totaling $1.9B in 2025.

"While Intel could incur some capital gains tax, an outright sale looks viable, and should significantly strengthen Intel's balance sheet," Pajjuri said.

Such a deal for Marvell would be "neutral to slightly accretive" to Marvell's earnings and provide "modest synergies."