Intel shares jumped about 5% on Monday after the company sold a majority stake in its Altera chip division and lowered its expense forecast. The move gave investors confidence as Intel continues restructuring under CEO Lip-Bu Tan.
The chipmaker sold 51% of Altera to private equity firm Silver Lake for $3.3 billion on September 12. Intel keeps 49% ownership in Altera, which earned $816 million in revenue in the first half of 2025 with a 55% profit margin.
This sale helped Intel cut its 2025 full-year operating expense target from $17.0 billion to $16.8 billion. The company’s 2026 expense target stays at $16.0 billion. The reduction shows Intel’s focus on managing costs while keeping growth plans on track.
CEO Lip-Bu Tan said Intel is working to make its foundry business more financially disciplined. The company plans to reduce its workforce to 75,000 and create a separate board for the foundry unit. These steps aim to attract major customers for Intel’s 14A process by 2026.
CFO David Zinsner said the sale and other cost cuts will help Intel improve efficiency and focus on core business areas. The company wants to use its money wisely and strengthen its position in the semiconductor market.
Investors reacted positively to the news, leading to an Intel stock surge of 5%. Shares are now about 27% higher this year, showing that the market likes Intel’s steps to cut costs and focus on key areas.
The Altera deal and cost reduction are Intel's measures regarding restructuring operations, streamlining for better profit margins. According to experts, such changes could keep Intel competitive with the likes of NVIDIA and TSMC.
Intel’s stock gain reflects market optimism about its cost control and strategic focus. By selling non-core assets and lowering expenses, Intel is trying to make its business stronger and more efficient.
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