Intel has announced a new financial reporting structure that aligns with its previously announced Foundry Operating Model for 2024 and beyond, targeting 40% adjusted gross margins at its foundry. The company has outlined ambitions to achieve 60% non-GAAP gross margins and 40% non-GAAP operating margins by 2030. Despite these ambitions, Intel has reported declining revenue from its factories and widening losses, highlighting the challenges of its expensive expansion plan. The foundry business is expected to report losses for the next few years, with a $7 billion loss reported in 2023. Intel's segmentation into product and foundry businesses aims to provide the market with greater transparency and understanding of its current and future operations, as detailed in the Intel 8k breaking out product and foundry revenue. Additionally, Intel's 5 in 4 strategy and the announcement that 18A-based CPUs will ramp to high volume in 2026 are part of its efforts to navigate these challenges. However, analysts have raised concerns about the profitability of Intel's foundry business and the longer timeframe for reaching its margin targets.
$INTC shares slide after reporting foundry business losses of $7 billion in 2023. CFRA Research senior equity analyst @AngeloZino discusses: https://t.co/TbP9BJPkcH
$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
This $INTC Foundry slide from yesterday is informative for many reasons. 1/ Honest about the past- @Intel rarely (historically) will show a "-" even when the entire world knows. I take this as a positive cultural shift. 2/ Aspirational about the future- Intel is in it to win it.… https://t.co/Gv6bA5VJ48 https://t.co/sTYXv7Djcr
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.
Intel $INTC foundries won't be profitable until 2030, losing $7bn in 2023 https://t.co/uV4CEcv5l8
Intel: 18A-based CPUs will ramp to high volume in 2026 https://t.co/3katKLMMG7 https://t.co/UIwd2auDTc
BREAKING 🚨: Intel $INTC https://t.co/PJcPRIujAx
$INTC I mentioned this is a bad name to own. And did a deep dive too. https://t.co/2xIwLZ3ce1
Is Intel Back? Foundry & Product Resurgence Measured Foundry Cost Wall Whale Customers Datacenter Share The Money Problem https://t.co/nA3W9fKsAE
Intel Sees Foundry Profitability Still a Few Years Away https://t.co/zvsQ7sJz0y
A quick breakdown of key points from today's @Intel investor webinar. 1. Intel Products -> reports more like a fabless semiconductor company. 2. Intel Foundry -> reports like a foundry (will be at a loss for next few years) 3. Market -> Gains transparency and understands… https://t.co/5j5LpwZ6sc
Intel's new segment reporting is a no-surprise to me. Product group has competitive margins given competitive foundry. $INTC making gigantic foundry investments pre-revenue that make that biz, short term, negative CM. If this is a surprise, you may not be paying attention. https://t.co/UUP6Ipz311
The TLDR on @Intel's segmentation webinar Intel Products -> reports more like a fabless semiconductor company. Intel Foundry -> reports like a foundry (will be at a loss for next few years) Market -> Gains transparency and understands better the current and future Intel… https://t.co/bFpyDhnj9d
Listening now to @PGelsinger deliver @Intel's new reporting to split its products from its foundry business. Pat leans into the company's 5 in 4 strategy with a look beyond its commitment to 5 nodes in 4 years. The long and short is the company will begin to look more in… https://t.co/iQhB7zgqON
Intel said that revenue from its factories is declining and losses are widening, showing the challenges of an expensive expansion plan. https://t.co/Xn3vhVASAT
The moment we have all been waiting for. The Intel 8k breaking out product and foundry revenue. Very nice they make the product group look like a fabless company and provide the last three years PNL with this new scenario. They needed to do this exercise years ago.
$INTC | Intel Expects To Accelerate On Its Path Toward Achieving Ambition Of 60% Non-GAAP Gross Margins And 40% Non-GAAP Operating Margins In 2030
*INTEL: TARGETS 40% ADJ GROSS MARGINS AT FOUNDRY
$INTC | Intel Outlines New Financial Reporting Structure That Is Aligned With Previously Announced Foundry Operating Model For 2024 And Beyond