Intel Stock Is Falling Wednesday: What's Going On?

Intel Corp INTC shares are trading lower Wednesday after the company disclosed its foundry business recorded an operating loss of $7 billion last year.

What Happened: After the market close on Tuesday, Intel announced a new financial reporting structure designed to drive increased cost discipline and higher returns by providing greater transparency, accountability and incentives.

Beginning with the first quarter 2024, Intel will report segment results aligned with the following operating segments: Client Computing Group, Data Center and AI, Network and Edge, Intel Foundry, Altera, Mobileye, and Other.

Intel also revealed financial information for its foundry business in a new regulatory. The company said its foundry business had an operating loss of $7 billion in 2023, versus operating losses of $5.2 billion in 2022 and $5.1 billion in 2021. Intel also said its foundry business generated total revenue of $18.9 billion in 2023, down from $27.5 billion in 2022.  

Intel said in the press release that foundry operating losses are expected to peak in 2024. The company also noted that it aims to achieve break-even operating margins midway between now and the end of 2030 in its foundry business.

"This model is designed to unlock significant cost savings, operational efficiencies and asset value. As it begins to take hold, we expect to accelerate on our path toward achieving our ambition of 60% non-GAAP gross margins and 40% non-GAAP operating margins in 2030," said Dave Zinsner, CFO of Intel.

Intel also announced the appointment of Lorenzo Flores as CFO of Intel Foundry, effective April 8. Intel said Flores possesses nearly 30 years of financial experience in semiconductors and technology, including most recently as the CFO of Xilinx.

Check This Out: Intel Targets $15B In Foundry Revenue By 2030, But Analyst Says TSMC Will Be ’10X Larger’

INTC Price Action: Intel shares were down 5.21% at $41.66 at the time of writing, according to Benzinga Pro.

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