Intel has encountered significant challenges following its ambitious expansion plan, leading to declining revenue from its factories and widening losses. The company, a major player in the U.S. semiconductor manufacturing sector, secured nearly $20 billion in funding from the CHIPS and Science Act last month, highlighting its critical role in domestic technology infrastructure. However, Intel's recent financial disclosures reveal a $7 billion loss in its foundry business for 2023, with specific segments like Data Center/AI experiencing declines. This situation has prompted a reassessment of its financial targets, now pushing the goal of achieving 60% Gross Profit Margin (GPM) and 40% EBIT margin to 2030. The company's stock has suffered as a result, with a notable 7% drop after a sales miss. These developments have sparked debate over the efficacy of government subsidies in bolstering the semiconductor industry, with Intel's struggles serving as a focal point for discussions on industrial policy.
$INTC found support at the 200-day today, but this thing still looks pretty bad overall. Been selling off all year while the rest of the semi space has largely been on fire. https://t.co/5fGMnx4jrz
From @WSJopinion: Politicians of both parties tout Intel as a national champion, but these days it looks more like an emblem of dubious government industrial policy https://t.co/9VHZVmj3Fs
"Intel and Industrial Policy in Action: The U.S. chip maker now says it will need even more subsidies, as it loses money on its foundry business." https://t.co/4fSJ9DNi0h https://t.co/xCuwOS2lBg
Intel $INTC down 7% on sales miss We’ve been consistent on Intel and calling it out as a laggard Intel needs a new AI PC product cycle to get its mojo going That’s not happening this year I do believe your expression in tech needs to be very precise We’ve done a good of… https://t.co/XLVRuBXvW8
$INTC shares slide after reporting foundry business losses of $7 billion in 2023. CFRA Research senior equity analyst @AngeloZino discusses: https://t.co/TbP9BJPkcH
Excellent overview of China's chip industry by @pstAsiatech at American Affairs. https://t.co/hfhIxiwWyB One additional thought: Huawei is spending several billion dollars a year in basic research on materials science. The future of semiconductors may not be in etching thinner…
$INTC really didn’t do themselves any favors with this release showing new segments, in fact it looks worse than what people expected. Data center/AI seeing declines. Longer timeframe for reaching margin targets of 60% GPM & 40% EBIT margin now 2030. Also Foundry margin outlook… https://t.co/biYVFQUPpP
Intel, $INTC, has said that revenue from its factories is declining and losses are widening, showing the challenges of an expensive expansion plan, per Bloomberg.
Oof! "Intel’s role as one of the only U.S. companies doing cutting-edge semiconductor manufacturing on American soil was a big reason why it secured nearly $20 billion in CHIPS and Science Act funding last month." @cnbc https://t.co/QYv8xzPP1z
BREAKING 🚨: Intel $INTC https://t.co/PJcPRIujAx