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Intel’s Shares Plummet 8% Following Significant Loss in Foundry Business

Byeditor

Apr 3, 2024

Intel shares took a significant hit on Wednesday following the release of long-awaited financial information in an SEC filing. The company reported an operating loss of $7 billion for its semiconductor manufacturing business in 2023. This was the first time that Intel had disclosed revenue specifically for its foundry arm, separate from its products business which reported $11.3 billion in operating income for the same year.

In response to the financial data, analysts at Cantor Fitzgerald emphasized the need for Intel to drive its foundry and product operating margins higher. They noted that the company’s losses in the foundry arm are expected to peak in 2024 and could break even by the middle of 2030. This timeline sets the stage for Intel to focus on improving its financial performance over the coming years.

Stifel analysts expressed a positive view of Intel’s strategic plans in their note, maintaining a hold rating and a target price of $45 on the stock. Despite this, they indicated a preference for companies like NVDA and AMD, which are expected to benefit more immediately from developments in artificial intelligence technology.

Overall, the financial disclosure provided by Intel marks a new chapter for the company as it navigates the challenges of the semiconductor industry. With a clear roadmap for improving its financial performance, Intel is poised to make strides towards achieving its long-term goals in the increasingly competitive market.

By editor

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