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

Intel’s financial report for its semiconductor manufacturing business 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 2024. Despite this setback, Intel expects its foundry losses to peak in 2024 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. Both analysts are cautiously optimistic about Intel’s future, recognizing the long-term nature of its plans and suggesting that investors consider other AI-focused companies like NVDA and AMD in the shorter term.

Intel’s shares closed down 8% on Wednesday following the release of its long-awaited financials for its semiconductor manufacturing business in an SEC filing. The filing revealed an operating loss of $7 billion in 2024 for the foundry arm of the company, which is a significant challenge ahead for the company. However, despite this setback, Intel expects its foundry losses to peak in 2024 and break even by the end of 2030.

Analysts at Cantor Fitzgerald praised Intel’s new financial reporting structure but emphasized the need for

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