$3.3B Deal: Intel Finalizes Altera 51% Stake Sale

According to reports, Intel has revised its 2025 adjusted operating expense target from $17 billion to $16.8 billion, reflecting the spin-off of its programmable chip unit, Altera. The cost adjustment lifted Intel's stock nearly 4%, offering investors some relief after years of rising expenses weighed heavily on the company's balance sheet.

Intel posted a $18.8 billion annual loss in 2024, its first since 1986, following massive investments under former CEO Pat Gelsinger to expand its struggling foundry business. Newly appointed CEO James Chen is now focused on streamlining operations and reshaping management to restore financial stability.

Meanwhile, the Trump administration converted funds from the Biden-era CHIPS Act into equity, securing a 10% stake in Intel. Earlier this year, Intel sold a 51% stake in Altera to Silver Lake for $8.75 billion—less than half the $16.7 billion it paid for the unit back in 2015. The deal, finalized on September 12, valued Silver Lake's majority share at roughly $3.3 billion in equity, supported by debt financing and Altera's cash flow.

As a standalone business, Altera posted $816 million in revenue and a 55% gross margin in the first half of 2025, with $356 million in operating expenses. Intel kept its 2026 expense outlook at $16 billion, while confirming that headcount will shrink by over 20% by the end of 2025. Chen emphasized tighter financial discipline, promising, “no more blank checks.”