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Intel (INTC) is moving sharply higher after the company disclosed in an SEC filing that it now expects FY25 adjusted operating expenses to be $16.8 bln, down from its prior forecast of $17.0 bln. The improved expense outlook follows INTC’s completed sale of its majority stake in Altera -- its programmable chip unit -- on September 12. The move is being viewed positively by investors as a tangible step in INTC’s broader strategy to streamline operations, bolster liquidity, and remain disciplined with cost controls amid a still-challenging competitive landscape.

• The update comes with further reassurance for investors: INTC reaffirmed its 2026 non-GAAP operating expense target of $16.0 bln. That reaffirmation signals the company’s continued focus on cost discipline and lends credibility to its multi-year turnaround strategy, especially as it looks to reduce spending while simultaneously investing in strategic growth areas such as AI, foundry services, and next-gen chip design.
• The divestiture of Altera, which generated $816 mln in revenue during 1H25, is part of INTC’s broader realignment to sharpen its core focus and free up capital. Management appears committed to streamlining the business in order to better compete against more agile and higher-growth rivals. Although Altera contributed meaningful revenue, its sale aligns with INTC’s strategy to concentrate resources on its most promising, scalable segments.
• Still, INTC faces major challenges ahead. Most notably, the company’s loss-generating Foundry business remains a long-term project that has yet to prove it can achieve the kind of scale and profitability enjoyed by global leaders like Taiwan Semiconductor.
• Meanwhile, competitive pressure is intensifying: Advanced Micro Devices (AMD) and NVIDIA (NVDA) continue to widen their technological lead, especially in AI-accelerated computing, while Qualcomm (QCOM) is gaining ground in the PC and laptop markets with new ARM-based chipsets that threaten Intel’s x86 dominance.

Briefing.com Analyst Insight:

INTC is catching a tailwind today after trimming its FY25 expense forecast and reaffirming its 2026 cost-reduction target -- a move that supports the bull case for INTC’s ongoing turnaround. The sale of its majority stake in Altera helps shore up cash and streamline the business, signaling continued strategic discipline. However, the road ahead remains steep. INTC still needs to prove it can revive its foundry ambitions, regain CPU share from AMD, and hold off QCOM’s push into client computing. The company is taking steps in the right direction, but execution will be critical in the quarters to come.