Intel Corp: Cost-Cutting and Altera Divestment

By Ion Jauregui – Analyst at ActivTrades

In short: Intel Corp (NASDAQ: INTC) has cut its adjusted operating expense forecast for 2025 to $16.8 billion, down from the originally projected $17 billion. The adjustment comes after removing Altera, its programmable chips division, from its accounts, following the sale of a 51% stake to Silver Lake for $8.75 billion—a steep drop compared to the $17 billion Intel paid in 2015.

The transaction, completed on September 12, marks a strategic shift. Silver Lake contributed $3.3 billion in equity to take majority control, while Altera, during the first half of 2025, generated $816 million in revenue, a 55% gross margin, and $356 million in expenses.

Lip-Bu Tan Strategy (Balance Sheet Cleanup)

This move reflects Lip-Bu Tan’s strategy to clean up the balance sheet and redirect resources toward higher-potential businesses, at a time when the semiconductor sector is facing fierce competition from NVIDIA, AMD, and TSMC. The accounting impact is negative, as Intel sold at a significant depreciation compared to its acquisition price, but the relief in operating expenses could improve operating margins heading into 2026.

Another key factor is the increasing participation of the U.S. government, which has converted part of its subsidies into equity, now holding a 10% ownership stake. This strengthens Intel’s strategic role within the national semiconductor plan but also adds political pressure and heightened performance expectations.

Technical Analysis of Intel (Ticker AT: INTC.US)

Intel’s stock retraced from its 2024 highs of $50.60 into a range between $26.41 and $17.67, where it has traded since August last year through this year. Currently, the stock is trading around $25.27 in a clearly bullish move that began on August 1. This uptrend seems to be gaining traction, with a moving average crossover showing the 50-day MA acting as price support, while the 100-day MA has moved above the 200-day MA.

The Point of Control (POC) sits at the lower end of this range, around $20.12. The RSI currently indicates slightly overbought conditions at 61.28%, while the MACD, although above its histogram in negative territory, seems to be signaling potential exhaustion.

If positive momentum resumes, Intel would need to break strongly above the resistance at the upper end of its current range and test $30, a former support area with significant volume concentration. Conversely, if momentum fades, the current price consolidation could lose ground toward the indicated POC level. Meanwhile, ActivTrades US Market Pulse remains in neutral territory.

Cleanup Mode

Intel remains in “cleanup mode”, divesting and restructuring to strengthen its balance sheet and improve future profitability. However, the recent stock performance reflects investors’ skepticism regarding short-term results. The key will be whether Intel can stabilize margins and capture market share in high-growth segments against more agile competitors.


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