Intel closed the sale of 51% of Altera to Silver Lake, leading to lower operating expenses. This move is expected to boost cash without a significant impact on profits. Shares of Intel rose as much as 5.7% before settling at a 3.8% gain. CEO Lip-Bu Tan is driving a turnaround strategy.

The sale of Altera to Silver Lake for $3.3 billion will enhance Intel’s balance sheet. Intel will focus on core CPU, GPU, and foundry businesses, with the ability to de-consolidate Altera’s results. Adjusted operating expenses for 2025 are now projected at $16.8 billion, down $0.2 billion from previous guidance.

Despite cost-cutting efforts, Intel must focus on revenue growth through chip design and customer attraction. The stock has a low valuation and may react positively to any good news. The company is aiming to overcome negative narratives and position itself for future success. Considerations for investing in Intel are based on long-term growth potential.

Read more at Nasdaq: Why Intel Rallied Today | Nasdaq