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    Intel trims full-year expense outlook following Altera stake sale – Reuters

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    Intel trims full-year expense outlook following Altera stake sale - Reuters

    Sept 15 (Reuters) – Intel (INTC.O), opens new tab said on Monday it has lowered its full-year 2025 adjusted operating expense target to $16.8 billion, from $17 billion earlier, to reflect the deconsolidation of its programmable chip business, Altera.

    Shares of the struggling chipmaker rose nearly 4% as the trimmed projected expenses provided investors with some respite after burgeoning costs left Intel with a strained balance sheet.

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    The company recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986, after former CEO Pat Gelsinger poured billions into expanding its loss-making contract-manufacturing business.

    New CEO Lip-Bu Tan is streamlining operations and making management changes to strengthen the company’s finances.

    This comes as the U.S. government has taken a 10% equity stake by converting Biden-era grants into shares.

    In April, Intel agreed to sell 51% of Altera to private equity firm Silver Lake, valuing the unit at $8.75 billion, well below the nearly $17 billion Intel paid in 2015.

    Intel completed the transaction on September 12, with Silver Lake acquiring a majority stake in Altera for an equity value of about $3.3 billion, according to a regulatory filing, reflecting debt financing and cash for the business.

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    As an Intel segment in the first half of 2025, Altera reported a 55% gross margin on $816 million in revenue and $356 million in operating expenses.

    Intel kept its 2026 full-year operating expense target at $16 billion.

    The company said in July it will end this year with a workforce more than a fifth smaller than last year. Tan has pledged tighter cost discipline and “no more blank checks.”

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    Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid

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