Selling the Pieces: Altera, Mobileye and NANDThin moat

Intel (INTC) — moat facet

Intel sold half of Altera and more of Mobileye to fund its factories, and still wrote down Mobileye by $3.9 billion.

While partners funded new factories, Intel sold businesses outside its core. It sold 51% of Altera, the programmable-chip maker, to Silver Lake, closing on 12 September 2025, for net consideration of $4.3 billion including $4.8 billion of cash1, and recognised a pre-tax gain of $5.6 billion2. It completed the second phase of the sale of its NAND memory business to SK hynix for $1.8 billion of cash3.

Cash raised from sales ($M)Altera 51%, 20254,800NAND second closing, 20251,800Mobileye shares, 2025921Intel Form 10-K FY2025
About $7.5 billion raised from the pieces.

It also reduced its holding in Mobileye, the driver-assistance company. Net sales of 57.5 million Mobileye shares raised $921 million in 20254, and non-controlling interests in Mobileye rose to 23% by June 20265, leaving Intel with about 77%6.

The sales show the strategy narrowing to its core: processors and factories. They also show what the diversification was worth. In the first quarter of 2026 Intel recorded a goodwill impairment of $3.9 billion, substantially all of it related to Mobileye7.

Selling businesses funds the plan once. The 2025 gains flattered net income, which was a loss of $267 million even with the Altera gain included8.

The sales also changed what Intel reports. Altera's revenue left the consolidated figures after 11 September 20259, and All Other's revenue fell to $701 million in the second quarter of 2026 from $1,053 million a year earlier10. Part of Intel's revenue decline since 2021 is simply businesses it no longer owns.

This facet is a balance sheet tactic, not a moat. The number that says whether it worked is net debt, which rose to about $20.8 billion at June 2026 from $9.2 billion at the end of 202511; asset sales that do not stop net debt rising have run out of room to help.

Moat trajectory: Narrowing

Few large assets remain to sell; net debt more than doubled in six months of 2026.

The number that tests this moat
Moat Explorer calc
Net debt, latest quarter
About $20.8bn (27 June 2026); $9.2bn at end-2025

The balance sheet after asset sales; further increases would mean sales can no longer fund the plan.

How it's calculated: Short-term plus long-term debt less cash and short-term investments, from Intel's FY2025 and Q2 2026 balance sheets.
Source: Moat Explorer calculation from Intel filings ↗
⚠ Threats to the moat
⚠ THREAT 01
Mobileye's $3.9 Billion Impairment
Intel has written down its Mobileye purchase twice, by $2.8 billion in 2024 and $3.9 billion in 2026.
References
  1. ReportedIt sold 51% of Altera, the programmable-chip maker, to Silver Lake, closing on 12 September 2025, for net consideration of $4.3 billion including $4.8 billion of cash, and recognised a pre-tax gain of $5.6 billion.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  2. ReportedIt sold 51% of Altera, the programmable-chip maker, to Silver Lake, closing on 12 September 2025, for net consideration of $4.3 billion including $4.8 billion of cash, and recognised a pre-tax gain of $5.6 billion.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  3. ReportedIt completed the second phase of the sale of its NAND memory business to SK hynix for $1.8 billion of cash.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  4. ReportedNet sales of 57.5 million Mobileye shares raised $921 million in 2025, and non-controlling interests in Mobileye rose to 23% by June 2026, leaving Intel with about 77%.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  5. ReportedNet sales of 57.5 million Mobileye shares raised $921 million in 2025, and non-controlling interests in Mobileye rose to 23% by June 2026, leaving Intel with about 77%.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  6. Moat Explorer calcNet sales of 57.5 million Mobileye shares raised $921 million in 2025, and non-controlling interests in Mobileye rose to 23% by June 2026, leaving Intel with about 77%.
    Moat Explorer calculation from Intel's reported figures ($ millions unless stated). Segment margins 2025: Client Computing 9,317 / 32,228 = 28.9% (2024: 11,594 / 33,346 = 34.8%; Q2 2026: 2,343 / 8,877 = 26.4%); Data Center and AI 945 / 15,980 = 5.9% (2023), 1,414 / 16,125 = 8.8% (2024), 3,422 / 16,919 = 20.2% (2025), 2,474 / 6,262 = 39.5% (Q2 2026); Intel Products 12,739 / 49,147 = 25.9%. Revenue shares 2025: client 32,228 / 52,853 = 61.0%; data center 16,919 / 52,853 = 32.0%; together 49,147 / 52,853 = 93.0%. Client growth Q2 2026: 8,877 / 7,871 - 1 = 12.8%. Foundry: internal revenue 17,826 - 307 = 17,519, 17,519 / 17,826 = 98.3%; external share 307 / 17,826 = 1.7%; operating losses 7,083 + 13,291 + 10,318 = 30,692. Intel share of x86 server revenue Q1 2026: 100 - 46.2 = 53.8%. Revenue 2025 against 2021: 52,853 / 79,024 - 1 = -33.1%. Headcount 82.3 / 124.8 - 1 = -34%. Government stake 433.3M x $127.39 = about 55.2 bn; purchase funds 5.7 + 3.2 = 8.9 bn. Warrants 241M x (127.39 - 20.00) = about 25.9 bn. Nvidia stake 215M x 127.39 = about 27.4 bn; 215 / 4,994 = 4.3%. Backers 11.0 + 8.9 + 5.0 + 2.0 = 26.9 bn. Apollo 14.2 - 11.0 = 3.2 bn. Mobileye 100% - 23% = 77%. Net debt end-2025: (2,499 + 44,086) - (14,265 + 23,151) = 46,585 - 37,416 = 9,169; 27 June 2026: (1,988 + 48,549) - (12,874 + 16,853) = 50,537 - 29,727 = 20,810. Shares: diluted 4,530 / 4,090 - 1 = 10.8% (2021-2025); outstanding June 2026 5,043 against 4,090 diluted in 2021 = 23% more. China share of revenue 12,694 / 52,853 = 24.0% (2025); 15,532 / 53,101 = 29.2% (2024); China 12,694 / 22,961 - 1 = -44.7% (2021-2025). Gross margin 43,815 / 79,024 = 55.4% (2021); 21,711 / 54,228 = 40.0% (2023). R&D 16,546 - 13,774 = 2,772; R&D share of revenue 13,774 / 52,853 = 26.1% (2025), 16,546 / 53,101 = 31.2% (2024). Operating cash flow to gross capital spending 9,697 / 17,672 = 0.55. All Other external revenue: 54,228 - 32,305 - 15,980 - 547 = 5,396 (2023); 53,101 - 33,346 - 16,125 - 159 = 3,471 (2024); 52,853 - 32,228 - 16,919 - 307 = 3,399 (2025). Trailing EPS to June 2026: -0.06 - (-0.19 - 0.67) + (-0.73 - 2.16) = -2.09. Market value 669.37 / 86.48 = 7.7 times end-2024; share price 127.39 / 29.23 = 4.4 times the 52-week low - capital, ownership and valuation. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Intel's Forms 10-K, 10-Q, results releases, prepared remarks and market data; operands shown in the source line.
  7. ReportedIn the first quarter of 2026 Intel recorded a goodwill impairment of $3.9 billion, substantially all of it related to Mobileye.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  8. ReportedThe 2025 gains flattered net income, which was a loss of $267 million even with the Altera gain included.
    Intel fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - statements, capital spending and adjusted free cash flow. — FY2025 · publ. 22 January 2026 · source ↗
  9. ReportedAltera's revenue left the consolidated figures after 11 September 2025, and All Other's revenue fell to $701 million in the second quarter of 2026 from $1,053 million a year earlier.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  10. ReportedAltera's revenue left the consolidated figures after 11 September 2025, and All Other's revenue fell to $701 million in the second quarter of 2026 from $1,053 million a year earlier.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  11. Moat Explorer calcThe number that says whether it worked is net debt, which rose to about $20.8 billion at June 2026 from $9.2 billion at the end of 2025; asset sales that do not stop net debt rising have run out of room to help.
    Moat Explorer calculation from Intel's reported figures ($ millions unless stated). Segment margins 2025: Client Computing 9,317 / 32,228 = 28.9% (2024: 11,594 / 33,346 = 34.8%; Q2 2026: 2,343 / 8,877 = 26.4%); Data Center and AI 945 / 15,980 = 5.9% (2023), 1,414 / 16,125 = 8.8% (2024), 3,422 / 16,919 = 20.2% (2025), 2,474 / 6,262 = 39.5% (Q2 2026); Intel Products 12,739 / 49,147 = 25.9%. Revenue shares 2025: client 32,228 / 52,853 = 61.0%; data center 16,919 / 52,853 = 32.0%; together 49,147 / 52,853 = 93.0%. Client growth Q2 2026: 8,877 / 7,871 - 1 = 12.8%. Foundry: internal revenue 17,826 - 307 = 17,519, 17,519 / 17,826 = 98.3%; external share 307 / 17,826 = 1.7%; operating losses 7,083 + 13,291 + 10,318 = 30,692. Intel share of x86 server revenue Q1 2026: 100 - 46.2 = 53.8%. Revenue 2025 against 2021: 52,853 / 79,024 - 1 = -33.1%. Headcount 82.3 / 124.8 - 1 = -34%. Government stake 433.3M x $127.39 = about 55.2 bn; purchase funds 5.7 + 3.2 = 8.9 bn. Warrants 241M x (127.39 - 20.00) = about 25.9 bn. Nvidia stake 215M x 127.39 = about 27.4 bn; 215 / 4,994 = 4.3%. Backers 11.0 + 8.9 + 5.0 + 2.0 = 26.9 bn. Apollo 14.2 - 11.0 = 3.2 bn. Mobileye 100% - 23% = 77%. Net debt end-2025: (2,499 + 44,086) - (14,265 + 23,151) = 46,585 - 37,416 = 9,169; 27 June 2026: (1,988 + 48,549) - (12,874 + 16,853) = 50,537 - 29,727 = 20,810. Shares: diluted 4,530 / 4,090 - 1 = 10.8% (2021-2025); outstanding June 2026 5,043 against 4,090 diluted in 2021 = 23% more. China share of revenue 12,694 / 52,853 = 24.0% (2025); 15,532 / 53,101 = 29.2% (2024); China 12,694 / 22,961 - 1 = -44.7% (2021-2025). Gross margin 43,815 / 79,024 = 55.4% (2021); 21,711 / 54,228 = 40.0% (2023). R&D 16,546 - 13,774 = 2,772; R&D share of revenue 13,774 / 52,853 = 26.1% (2025), 16,546 / 53,101 = 31.2% (2024). Operating cash flow to gross capital spending 9,697 / 17,672 = 0.55. All Other external revenue: 54,228 - 32,305 - 15,980 - 547 = 5,396 (2023); 53,101 - 33,346 - 16,125 - 159 = 3,471 (2024); 52,853 - 32,228 - 16,919 - 307 = 3,399 (2025). Trailing EPS to June 2026: -0.06 - (-0.19 - 0.67) + (-0.73 - 2.16) = -2.09. Market value 669.37 / 86.48 = 7.7 times end-2024; share price 127.39 / 29.23 = 4.4 times the 52-week low - capital, ownership and valuation. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Intel's Forms 10-K, 10-Q, results releases, prepared remarks and market data; operands shown in the source line.
Sources
Generated September 25, 2026