(Reuters) - Intel said on Monday it has lowered its full-year 2025 adjusted operating expense target to $16.8 billion, from $17 billion earlier, to reflect the deconsolidation of its programmable chip business, Altera.
Shares of Intel jumped about 5% in premarket trading.
The struggling chipmaker agreed in April to sell a 51% stake in Altera to private equity firm Silver Lake, valuing the unit at just $8.75 billion, a sharp decline from the nearly $17 billion Intel paid to acquire it in 2015.
Intel is streamlining under CEO Lip-Bu Tan to bolster cash. The chipmaker has undergone several shake-ups this year, including management changes and the U.S. government taking a 10% equity stake by converting grants into shares.
Intel completed the transaction on September 12, with Silver Lake acquiring a majority stake in Altera for an equity value of about $3.3 billion, according to a regulatory filing.
As a segment of Intel in the first half of 2025, Altera reported a gross margin of 55% on $816 million in revenue, with operating expenses of $356 million.
Intel's full-year 2026 operating expense target of $16 billion remains unchanged, the company said.