Intel has completed its sale of a majority stake in Altera.Semiconductor giant Intel (INTC 2.74%) agreed earlier this year to sell a majority stake in FPGA designer Altera to an investment firm. Intel paid $16.7 billion for Altera back in 2015, but it was never able to thrive within the larger company. During the first half of 2025, Altera generated revenue of $816 million, a gross margin of 55%, and had $356 million in operating expenses, according to an SEC filing from Intel.For comparison, Altera generat ...

Core Viewpoint - Intel's second-quarter earnings report reflects a complex but ultimately positive narrative, indicating that the company's restructuring strategy is on track despite significant short-term costs [2][9]. Financial Performance - Q2 revenue reached $12.9 billion, flat year-over-year, but exceeded both Intel's guidance and Wall Street expectations [3]. - The Data Center and AI Group (DCAI) segment saw a 4% year-over-year revenue increase, while the Client Computing Group (CCG) experienced a slight 3% decline [4]. - The non-GAAP loss of $0.10 per share was primarily due to planned one-time charges, including $1.9 billion in restructuring costs and $800 million in asset impairments, viewed as investments for future efficiency [5]. Forward-Looking Guidance - The forecast for Q3 non-GAAP gross margin is approximately 36.0%, a significant improvement of over 600 basis points from Q2's 29.7% [6][7]. - This guidance indicates that cost-cutting measures are beginning to positively impact profitability, with gross margin serving as a key measure of manufacturing efficiency and pricing power [7]. Strategic Execution - The earnings report serves as a scorecard for management's execution, demonstrating that Intel is delivering on its strategic promises [8]. - The company has completed most of its planned 15% workforce reduction and is on track to meet long-term operating expense targets for 2025 and 2026 [11]. - Intel is halting planned factory projects in Germany and Poland and slowing construction in Ohio to align spending with market demand, part of its Smart Capital strategy [11]. Balance Sheet and Technology - In July, Intel strengthened its balance sheet by selling 57.5 million Mobileye shares, adding $922 million in cash [11]. - Key product milestones were achieved, including the start of production for the advanced Intel 18A process and confirmation of the first Panther Lake processors for shipment this year [11].