A sign outside Intel’s headquarters in Santa Clara, California, on January 30, 2023.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Intel The company’s shares fell nearly 3% on Wednesday after the company disclosed long-awaited financial data for its semiconductor manufacturing, or foundry, business in a U.S. Securities and Exchange Commission (SEC) filing, revealing an operating loss of $7 billion in 2023. 8%.
This is the first time Intel has reported total revenue for its foundry unit separately from its products business, with the unit reporting 2023 operating income of $11.3 billion.
Intel said on Tuesday it expects its foundry losses to peak in 2024 and break even between this quarter and the end of 2030.
Analysts at Cantor Fitzgerald maintained a neutral rating and $50 price target on the stock, praising the company’s new financial reporting structure but writing that Intel needs to improve its foundry and product operating margins.
“Now is when the real work begins,” analysts wrote in a note to investors on Tuesday. “Of course, this will take time, especially as Intel plans to truly improve its manufacturing leadership in 2027.”
Stifel analysts wrote in a note on Tuesday that they continue to be positive about Intel’s strategic plans while reiterating a hold rating and $45 price target on the stock.
“With multi-year execution cycles still ahead of us, we continue to like near-term AI beneficiaries, NVDA and AMD,” the analysts wrote.
—CNBC’s Kif Leswing contributed to this report.
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