Intel Corporation announced a downward revision to its projected operating expenses for the fiscal year 2025. The company lowered its adjusted operating expense target to $16.8 billion, a decrease from the previously announced $17 billion. This adjustment directly stems from the recent deconsolidation of its Altera programmable solutions group, following a significant stake sale to private equity firm Silver Lake. The transaction, completed on September 12th, saw Silver Lake acquire a 51% stake in Altera for an equity value of approximately $3.3 billion.
This sale marks a considerable financial shift for Intel. The $3.3 billion valuation stands in stark contrast to the nearly $17 billion Intel paid to acquire Altera in 2015. The significant difference highlights the challenges faced by the chipmaker in recent years. It reflects a strategic restructuring under the leadership of CEO Lip-Bu Tan, aimed at improving the company’s financial position and bolstering its cash reserves. These measures are part of a broader streamlining effort undertaken by Intel in 2024, which includes significant management changes and a 10% equity stake acquired by the U.S. government through the conversion of grants.
Despite the revised 2025 projection, Intel maintained its operating expense target for 2026 at $16 billion. This suggests a degree of confidence in the company’s ability to manage costs effectively moving forward, even with the divestment of a major segment. The Altera segment, before the sale, demonstrated strong profitability, reporting a gross margin of 55% on $816 million in revenue during the first half of 2025, with operating expenses of $356 million.
Intel’s actions underscore a proactive approach to financial management amidst a challenging technological landscape. The company is clearly prioritizing efficiency and resource allocation to navigate the current market conditions and build a stronger foundation for future growth. The sale of a significant stake in Altera represents a pivotal step in this strategic restructuring.
