Intel Stock Rises After Chipmaker Cuts Forecast for Expenses

Intel (INTC) shares advanced nearly 6% Monday when the struggling semiconductor manufacturer announced that it was lowering its outlook for full-year costs following the sale of a majority stake in its Altera programmable chip business.

The company had disclosed the sale of 51% of Altera to private equity firm Silver Lake for approximately $3.3 billion in April, and the deal closed last Friday. Intel added that it would retain control of the remaining 49% of Altera. 

Because of the infusion of cash, Intel now has a fiscal 2025 non-GAAP operating expenses target of $16.8 billion, down from its previous guidance of $17.0 billion. In a regulatory filing, it also noted that its target of fiscal 2026 operating expenses remained unchanged at $16.0 billion. 

CEO Lip-Bu Tan has been taking steps to slash spending, saying in the company's second-quarter earnings report that Intel was "taking the actions needed to build a more financially disciplined foundry." CFO David Zinsner added that the "changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact."

With today's rise, shares of Intel are about 27% higher year-to-date. 

UPDATE—This article has been updated with the latest share price information.

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