Intel Cuts 2025 Expense Outlook After Altera Sale to Silver Lake

BENGALURU, India — Intel Corporation announced on Monday it has reduced its full-year 2025 adjusted operating expense target from $17 billion to $16.8 billion. This change comes in light of the company’s decision to deconsolidate its programmable chip business, Altera.

The adjustment follows Intel’s agreement in April to sell a 51% stake in Altera to Silver Lake, a private equity firm, which values the unit at approximately $8.75 billion. This valuation marks a significant drop from the nearly $17 billion Intel paid to acquire Altera in 2015.

Under CEO Lip-Bu Tan, Intel is streamlining its operations to strengthen its cash flow. The company has faced numerous changes this year, including management shifts and adjustments related to U.S. government grants, which resulted in a 10% equity stake for the government through share conversion.

The transaction with Silver Lake concluded on September 12, 2025, with the firm acquiring majority ownership of Altera for an equity value of about $3.3 billion, according to a regulatory filing.

In the first half of 2025, Altera reported a gross margin of 55% on revenues of $816 million and operating expenses totaling $356 million. Intel confirmed that its operating expense target for 2026 remains at $16 billion.

The divestiture of Altera allows the unit to operate more independently while Intel keeps a significant interest and influence through a newly formed limited partnership.

Intel will start reporting its remaining investment in Altera using the equity method in its third-quarter earnings for 2025, consolidating only financial results up to September 11.