Intel Corp (NASDAQ:INTC, ETR:INL) shares moved higher after the chipmaker announced a reduction in its full-year 2025 adjusted operating expense target, following the sale of a majority stake in its Altera programmable chip unit.
In a filing, Intel said it now expects non-GAAP operating expenses of $16.8 billion for 2025, down from its previous forecast of $17 billion.
The adjustment reflects the deconsolidation of Altera, which ceased to be fully included in Intel’s results after private equity firm Silver Lake acquired a 51% stake in the business for about $3.3 billion on September 12. Intel retains the remaining 49% stake.
Altera contributed $816 million in revenue during the first half of 2025, with a 55% gross margin and operating expenses of $356 million.
Intel noted that its third quarter financials will include Altera’s results through September 11 before shifting to minority-interest accounting.
The company reaffirmed its 2026 non-GAAP operating expense target of $16 billion. On a GAAP basis, Intel expects 2025 operating expenses of approximately $21.9 billion, with adjustments for share-based compensation, restructuring charges, and other items bringing the figure down to its non-GAAP projection.
CEO Lip-Bu Tan has been leading efforts to streamline Intel’s operations, following a record $18.8 billion loss in 2024 under former CEO Pat Gelsinger.
The Altera sale is part of broader efforts to reduce costs and strengthen the balance sheet, alongside a workforce reduction of over 20% this year.
Shares of Intel added 4.1% at $25 on Monday, having surged almost 25% so far this year.