A sign outside Intel's headquarters in Santa Clara, California, January 30, 2023.
David Paul Morris | Bloomberg | Getty Images
Intel Corporation Shares fell 7% on Wednesday after the company disclosed long-awaited financials in an SEC filing for its semiconductor manufacturing, or foundry, business, revealing an operating loss of $7 billion in 2023.
It was the first time Intel reported total revenue for its foundry arm alone, separating it from the products business, which reported $11.3 billion in operating income in 2023.
Intel said on Tuesday that it expects foundry losses to peak in 2024 and reach midway between the current quarter and the end of 2030.
Analysts at Cantor Fitzgerald, who maintained 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 raise operating margins for its foundries and products.
“Now is when the real work begins,” analysts wrote in a note to investors on Tuesday. “Of course, this will take time, especially with Intel's planned manufacturing lead in 2027.”
Stifel analysts wrote that they continue to view Intel's strategic plans favorably in a note issued Tuesday while affirming a hold rating and price target of $45 per share.
“As the multi-year implementation cycle continues, we continue to favor near-term AI beneficiaries, such as NVDA and AMD,” the analysts wrote.
— CNBC's Kev Leswing contributed to this report.
