Intel’s stock plunges 8% following substantial losses in foundry business

Intel’s Foundry Business Struggles: An Analysis of its Financial Performance and Analyst Opinions

Intel’s shares plummeted 8% on Wednesday following the release of its highly anticipated financials for its semiconductor manufacturing business in an SEC filing. The document unveiled an operating loss of $7 billion for the foundry arm of the company in 2023.

This marked the first time that Intel had disclosed revenue totals for its foundry business separately from its products business, which reported $11.3 billion in operating income in 2023. Intel expects its foundry losses to reach their peak in 2024 before breaking even by the end of 2030.

Analysts at Cantor Fitzgerald commended Intel for its new financial reporting structure but urged the company to focus on increasing both its foundry and product operating margins. Meanwhile, Stifel analysts viewed Intel’s strategic plans positively but maintained a hold rating on the stock.

Despite the challenges ahead, both Cantor Fitzgerald and Stifel analysts remained cautiously optimistic about Intel’s future. They recognized the long-term nature of Intel’s plans and advised investors to consider other AI-focused companies like NVDA and AMD in the short term.

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