• Mon. Apr 22nd, 2024

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

BySamantha Johnson

Apr 3, 2024
Intel’s stock plunges 8% following substantial losses in foundry business

Intel’s shares closed down 8% on Wednesday following the release of its long-awaited financials for its semiconductor manufacturing business in an SEC filing. The filing revealed an operating loss of $7 billion in 2023 for the foundry arm of the company.

This is the first time that Intel has 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 peak in 2024 and break even by the end of 2030.

Analysts at Cantor Fitzgerald praised Intel for its new financial reporting structure but emphasized the need for the company to increase its foundry and product operating margins. Stifel analysts also viewed Intel’s strategic plans positively but reiterated a hold rating on the stock.

Despite the challenges ahead, both Cantor Fitzgerald and Stifel analysts are cautiously optimistic about Intel’s future. They recognize the long-term nature of Intel’s plans and suggest that investors consider other AI-focused companies like NVDA and AMD in the shorter term.

By Samantha Johnson

As a dedicated content writer at newshuwa.com, I weave words into captivating stories that inform and engage our audience. With a passion for storytelling and a keen eye for detail, I strive to craft articles that not only inform but also inspire discussion and curiosity. Whether delving into breaking news or exploring thought-provoking features, I aim to deliver dynamic and impactful content that resonates with our readers. Through my work, I aspire to spark conversation, educate, and entertain, ensuring that each piece I create contributes to the rich tapestry of information on our platform.

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