• Mon. Apr 15th, 2024

Intel Takes a Hit in Semiconductor Manufacturing Business; Expects Foundry Losses to Peak by 2030

BySamantha Jones

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

Intel’s shares took a hit on Wednesday after the company released its financial report for its semiconductor manufacturing business. The report, filed with the SEC, revealed an operating loss of $7 billion in 2024 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 Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

Leave a Reply