Intel

Semiconductors • Technology • Santa Clara, CA, United States • INTC (NMS)

408 765 8080 2200 Mission College Boulevard, Santa Clara, CA 95054-1549, United States

Quarter: Q3 2025 Reported: September 15, 2025 Sentiment: Positive

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Intel Products, Intel Foundry, and All Other segments. The company offers microprocessor and chipset, stand-alone SoC, and multichip package; Computer Systems and Devices; hardware products comprising CPUs, graphics processing units (GPUs), accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products. It also offers silicon and software products; and optimization solutions for workloads, such as AI, cryptography, security, storage, networking, and leverages various features supporting diverse compute environments. In addition, the company provides driving assistance and self-driving solutions; advanced process technologies enabled by an ecosystem of electronic design automation tools, intellectual property, and design services, as well as systems of chips, including advanced packaging technologies, software, and system. Further, it delivers and deploys intelligent edge platforms that allow developers to achieve agility and drive automation using AI for efficient operations with data integrity, as well as provides hardware and software platforms, tools, and ecosystem partnerships for digital transformation from the cloud to edge. The company serves original equipment manufacturers, original design manufacturers, cloud service providers, and other manufacturers and service providers. Intel Corporation was incorporated in 1968 and is headquartered in Santa Clara, California.

Analysis Summary

Intel Corporation has finalized the previously announced transaction to divest a 51% majority stake in its Altera business to an affiliate of Silver Lake, with the Purchaser acquiring the equity interests for approximately $3.3 billion. Intel will retain a 49% ownership stake in Altera, which will now be accounted for under the equity method of accounting starting September 12, 2025. Prior to deconsolidation, Altera contributed $816 million in revenue during the first half of 2025, achieving a gross margin of 55% and incurring operating expenses of $356 million.

Strategically, this divestiture allows Intel to optimize its portfolio and sharpen its focus on core operations. Financially, the deconsolidation of Altera has resulted in a favorable adjustment to Intel's financial outlook, with the full-year 2025 non-GAAP operating expense target revised downwards to $16.8 billion from the previous $17 billion. The company reiterated its commitment to cost discipline by maintaining its full-year 2026 non-GAAP operating expense target at $16.0 billion. The GAAP operating expense targets are $21.9 billion for 2025 and $19.0 billion for 2026, with non-GAAP adjustments primarily related to acquisition-related amortization, share-based compensation, and restructuring charges.

Competitive positioning and market trends were not explicitly detailed in this specific filing, which primarily focused on the transaction. However, the move suggests Intel is streamlining its business to better compete in its core markets. Risk factors highlighted include intense industry competition, significant R&D and manufacturing investments, complexities in product development, macroeconomic and geopolitical uncertainties, and supply chain disruptions. Analyst Q&A highlights are not applicable as this is a Form 8-K filing, not a full earnings call transcript.

Key Highlights

• Intel completed the sale of a 51% majority interest in its Altera business to Silver Lake.
• The transaction valued the acquired Altera equity interests at approximately $3.3 billion.
• Intel retains a 49% stake in Altera and will account for it under the equity method.
• Full-year 2025 non-GAAP operating expense target revised down to $16.8 billion (from $17 billion) due to Altera deconsolidation.
• Altera generated $816 million in revenue with a 55% gross margin in H1 2025 as part of Intel.
• Full-year 2026 non-GAAP operating expense target remains unchanged at $16.0 billion.

Financial Metrics

eps

YoY: Not provided

revenue

billion

YoY: Not provided for consolidated Intel. Altera H1 2025 revenue: $816 million.

guidance

net income

billion

YoY: Not provided

Stock Performance (90 Days)

Data through Dec 29, 2025

Layoff Events

Earnings Calls

Positive Signals

• Successful completion of a significant strategic divestiture.
• Reduction in full-year 2025 non-GAAP operating expense target.
• Retention of a 49% minority stake in Altera, allowing for potential future upside.
• Unchanged full-year 2026 non-GAAP operating expense target, indicating stable long-term cost control.
• Streamlining of business operations through portfolio optimization.

Risks & Concerns

— High level of competition and rapid technological change in the industry.
— Significant long-term and inherently risky investments in R&D and manufacturing facilities.
— Complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies.
— Macroeconomic conditions and geopolitical tensions and conflicts (e.g., US-China, Russia-Ukraine, Israel-Middle East, China-Taiwan).
— Complex global supply chain disruptions, delays, trade tensions, or shortages.