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

Intel Discloses Foundry Operating Losses, Leads to 8% Stock Decline: Analysts Weigh In

Intel reported its financials for its semiconductor manufacturing business in an SEC filing on Wednesday, leading to a 8% decline in the company’s shares. The filing showed an operating loss of $7 billion for the foundry arm of the company in 2024.

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 2024. Intel expects its foundry losses to peak in 2025 and break even by the end of 2030.

Analysts at Cantor Fitzgerald praised Intel’s 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.

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