Intel Corp. (NASDAQ:INTC) shares rose on Monday after the company announced the completion of a long-anticipated deal to sell a majority stake in its Altera business to Silver Lake. The transaction, originally signed on April 14, 2025, closed on September 12 after meeting all conditions.
Under the agreement, Silver Lake acquired 51% of Altera for about $3.3 billion, while Intel retained a 49% interest. Both parties contributed their holdings to a newly created limited partnership and signed an amended and restated partnership agreement.
Intel’s third-quarter 2025 financials will include Altera’s results from June 29 to September 11, after which Intel will account for its minority stake under the equity method.
Also Read: Intel Growth Challenges Are Not Over Despite Altera Stake Sale: Analyst
In the first half of 2025, Altera generated $816 million in revenue with a 55% gross margin and $356 million in operating expenses. Intel lowered its 2025 adjusted operating expense target to $16.8 billion from $17 billion to reflect Altera’s deconsolidation, keeping its 2026 target at $16 billion.
Intel reported GAAP operating expenses of about $21.9 billion for 2025 and expects $19 billion in 2026. After adjustments for share-based compensation, restructuring, and acquisition-related items, adjusted operating expenses are $16.8 billion for 2025 and are expected to be $16 billion for 2026.
The divestiture comes as Intel navigates significant structural changes and mounting financial pressures. Shares have gained more than 20% year-to-date, outpacing the Nasdaq Composite Index’s 15% return, aided by reports that the U.S. government is taking a sizable equity position in the company.
In August, Intel confirmed that the Trump administration had converted CHIPS Act grants into a $5.7 billion equity stake, giving the government 10% ownership and greater influence over the chipmaker’s strategy.
Intel Chief Financial Officer David Zinsner said the government investment is intended to preserve the company’s loss-making foundry business, which recorded $3.1 billion in second-quarter losses.
The agreement also provides Washington with a five-year warrant to purchase an additional 5% stake at $20 per share should Intel’s ownership in the foundry fall below 51%.
Newly appointed CEO Lip-Bu Tan has begun a sweeping restructuring aimed at stabilizing operations. He announced plans to reduce Intel’s workforce to 75,000 and to establish a separate board for the foundry unit, which the company hopes will secure a major customer for its 14A process in 2026.
The new CEO, Lip-Bu Tan, announced plans to cut the headcount to 75,000 and create a separate board for the foundry. Intel is pursuing a major customer for its 14A process in 2026.
The Altera sale underscores Intel’s broader effort to streamline operations and refocus on core businesses, even as it grapples with steep losses and intense competition in semiconductors.
Price Action: INTC stock is trading higher by 1.45% to $24.43 premarket at last check Monday.
Read Next:
Photo by Ascannio via Shutterstock
