• Thu. Apr 25th, 2024

Intel’s Financial Reporting: Foundry Struggles and Analysts’ Concerns Leave Investors Skeptical

BySamantha Nguyen

Apr 4, 2024
Intel’s stock plunges 8% following substantial losses in foundry business

Intel’s shares took a hit on Wednesday, falling 8% after the company released its long-awaited financials for its semiconductor manufacturing business in an SEC filing. The report revealed that Intel’s foundry arm 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 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 Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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