Intel Rallies on Cost-Cutting News Amid Semiconductor Turnaround Efforts
Intel shares surged as much as 5.7% on Monday after the company announced progress in its cost-cutting strategy, including the sale of a majority stake in its Altera FPGA unit to private equity firm Silver Lake. The deal, valued at $3.3 billion, allows Intel to de-consolidate Altera's overhead costs and tighten its focus on Core CPU, GPU, and foundry operations.
CEO Lip-Bu Tan's restructuring efforts appear to be gaining traction, with Intel revising its 2024 adjusted operating cost guidance downward by $200 million to $16.8 billion. The company maintains an even more aggressive target of $16 billion by 2026, signaling sustained austerity measures in its controversial semiconductor industry turnaround.