Intel’s shares plummeted by 8% on Wednesday following the release of its much-anticipated financial report for its semiconductor manufacturing business in a filing with the SEC. The document revealed that the foundry arm of the company suffered an operating loss of $7 billion in 2024, which is the first time 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 2024 and break even by the end of 2030. The company has recently undergone significant changes to its financial reporting structure, which analysts at Cantor Fitzgerald praised but emphasized the need for Intel 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 these 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.
