Intel drops almost 8% after chipmaker reports hefty loss in foundry business

Intel shares fell nearly 8% on Wednesday after the company disclosed long-awaited financial data in an SEC filing for its semiconductor manufacturing or foundry business, revealing an operating loss of 7 billion dollars in 2023.

It was the first time Intel released total revenue for its foundry business alone, separating it from the products business, which reported an operating profit of $11.3 billion in 2023.

Intel said Tuesday it expects its foundry losses to peak in 2024 and break even halfway between the current quarter and the end of 2030.

Cantor Fitzgerald analysts, maintaining their neutral rating and $50 price target on the stock, praised the company for its new financial reporting structure but wrote that Intel will need to increase its foundry operating margins and of products.

“NOW is where the real work begins,” analysts wrote in a note to investors Tuesday. “Of course, this will take time, especially with Intel’s planned rise to manufacturing leadership in 2027.”

Stifel analysts wrote that they continue to view Intel’s strategic plans positively in a note released Tuesday, while reiterating a hold rating and $45 price target for the stock.

“With a multi-year execution cycle still ahead, we continue to favor shorter-term AI beneficiaries NVDA and AMD,” the analysts wrote.

— Kif Leswing of CNBC contributed to this report.