Intel Stock Surges on Cost-Cutting Strategy, Analysts Remain Cautious

Intel (INTC) shares climbed over 3% in Monday trading as investors cheered the chipmaker's aggressive cost-cutting measures. The company now targets $16.8 billion in non-GAAP operating expenses for 2025—a $200 million reduction from prior guidance—while maintaining its $16 billion goal for 2026. CFO David Zinsner emphasized the company's progress in building "a more financially disciplined foundry," citing operational efficiency gains and asset monetization.

Market Optimism contrasts with analyst skepticism. Truist Securities' William Stein notably maintains reservations about Intel's near-term recovery prospects, despite the improved cost structure. The bullish movement comes alongside Intel's divestiture of its majority stake in Altera, which contributed to the revised financial targets.