Group 1 - MGX, an Abu Dhabi AI investment firm, has joined a buyout group to acquire a majority stake in Altera, leaving Intel with a 49% holding [1] - Altera is positioned as a foundational platform for next-generation computing, with ambitions to become a global leader in the AI era [2] - Intel's sale of 51% of Altera to Silver Lake valued the unit at $8.75 billion, significantly lower than the nearly $17 billion Intel paid in 2015 [3] Group 2 - MGX operates under Sheikh Tahnoon bin Zayed Al Nahyan, who oversees a $1.5 trillion business empire, including sovereign wealth funds and AI ventures [4] - Established last year with Mubadala and G42 as founding partners, MGX aims to surpass $100 billion in assets and is central to the UAE's financial intelligence strategy [5]

Core Viewpoint - Intel shares increased approximately 4% following the announcement of a lowered outlook for full-year costs after selling a majority stake in its Altera programmable chip business [1][4]. Financial Performance - Intel sold 51% of Altera to private equity firm Silver Lake for about $3.3 billion, with the deal closing recently [2]. - The sale has allowed Intel to adjust its fiscal 2025 non-GAAP operating expenses target to $16.8 billion, down from the previous guidance of $17.0 billion [3]. - The target for fiscal 2026 operating expenses remains unchanged at $16.0 billion [3]. Strategic Initiatives - CEO Lip-Bu Tan emphasized the need for financial discipline within the company, indicating that steps are being taken to reduce spending [4]. - CFO David Zinsner noted that the changes aimed at reducing operating costs and improving capital efficiency are yielding positive results [4]. Stock Performance - Following the recent developments, Intel shares have risen about 25% year-to-date [4].

Core Points - Intel has reduced its full-year 2025 adjusted operating expense target to $16.8 billion from $17 billion due to the deconsolidation of its programmable chip business, Altera [1] - The sale of a 51% stake in Altera to Silver Lake valued the unit at $8.75 billion, significantly lower than the nearly $17 billion Intel originally paid for it in 2015 [1] - Altera reported a gross margin of 55% on $816 million in revenue for the first half of 2025, with operating expenses of $356 million [3] Company Strategy - Under CEO Lip-Bu Tan, Intel is streamlining operations to improve cash flow, which includes management changes and the U.S. government's acquisition of a 10% equity stake by converting grants into shares [2] - The transaction with Silver Lake was completed on September 12, with the equity value of Altera's majority stake being approximately $3.3 billion [2] Future Outlook - Intel's full-year 2026 operating expense target remains unchanged at $16 billion [3]

Core Viewpoint - Intel has reduced its full-year 2025 adjusted operating expense target to $16.8 billion from $17 billion, reflecting the deconsolidation of its programmable chip business [1] Group 1 - The adjusted operating expense target for 2025 is now set at $16.8 billion, a decrease from the previous target of $17 billion [1] - The reduction in operating expense is attributed to the deconsolidation of Intel's programmable chip business [1]