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

Intel’s shares took a hit on Wednesday following the release of its financial report for its semiconductor manufacturing business. The report, filed with the SEC, revealed that the foundry arm of the company had an operating loss of $7 billion in 2024. This was 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 2024.

Intel expects its foundry losses to peak in 2025 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 Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

Leave a Reply