Intel’s Cost-Cutting Gambit Fuels Rally
Intel’s divestiture of its 51% stake in Altera to Silver Lake for $3.3 billion marks a calculated step in CEO Lip-Bu Tan’s restructuring agenda. By deconsolidating Altera’s financials, the company anticipates a $16.8 billion adjusted operating cost forecast for 2024-a $0.2 billion reduction from prior guidance. While this maneuver improves balance sheet liquidity, it also raises questions about the long-term viability of relying on asset sales to mask underperformance in core segments.