Data News > Pre Market Movers: Intel's Chipmaking Struggles Highlighted by $7 Billion Loss
- Intel's stock fell 5% before the bell on Wednesday due to ballooning losses at its contract chip-making business
- The company disclosed $7 billion in losses for its chip-making foundry in 2023
- The tech-heavy Nasdaq Composite Index fell 1% Tuesday and looked set to open lower again Wednesday
- Intel's stock slumped more than 4% in early premarket after revealing its chip-making business lost more than $7 billion last year
- Losses in the foundry business, which manufactures Intel's proprietary semiconductor chips, increased from $5.2 billion in the prior year
Intel Corp (NASDAQ:INTC, ETR:INL) has been facing significant challenges in its efforts to fortify its presence in the semiconductor manufacturing sector. The company's latest financial results have highlighted the extent of its struggles, with its stock falling 5% before the bell on Wednesday due to ballooning losses at its contract chip-making business.
The $7 billion in losses disclosed by Intel for its chip-making foundry in 2023 has raised concerns about the company's ability to compete effectively in the industry. This significant financial setback has underscored the wide gap between Intel and its rival, Taiwan Semiconductor Manufacturing Co., and suggests that it could take years for Intel to catch up with the profitability of its competitor.
The impact of Intel's struggles has been felt across the technology sector, with the tech-heavy Nasdaq Composite Index falling 1% on Tuesday and looking set to open lower again on Wednesday. Intel's stock slumped more than 4% in early premarket trading after it revealed the substantial losses incurred by its chip-making business, despite the growing demand for AI compute.
The losses in Intel's foundry business, which manufactures the company's proprietary semiconductor chips, have increased from $5.2 billion in the prior year. This trend has raised questions about Intel's ability to address its chipmaking shortcomings and regain its competitive edge in the industry.
Overall, Intel's $7 billion loss in its chip-making foundry has underscored the significant challenges the company faces in the semiconductor manufacturing sector. The financial setback has not only impacted Intel's stock performance but has also raised concerns about its ability to effectively compete with industry leaders such as Taiwan Semiconductor Manufacturing Co. and address the growing demand for AI compute.
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Pre Market Movers: Intel's Chipmaking Struggles Highlighted by $7 Billion Loss
By KlickAnalytics Data Insights | April 3, 2024 09:00AM ET
Key Points
- Intel's stock fell 5% before the bell on Wednesday due to ballooning losses at its contract chip-making business
- The company disclosed $7 billion in losses for its chip-making foundry in 2023
- The tech-heavy Nasdaq Composite Index fell 1% Tuesday and looked set to open lower again Wednesday
- Intel's stock slumped more than 4% in early premarket after revealing its chip-making business lost more than $7 billion last year
- Losses in the foundry business, which manufactures Intel's proprietary semiconductor chips, increased from $5.2 billion in the prior year
Intel Corp (NASDAQ:INTC, ETR:INL) has been facing significant challenges in its efforts to fortify its presence in the semiconductor manufacturing sector. The company's latest financial results have highlighted the extent of its struggles, with its stock falling 5% before the bell on Wednesday due to ballooning losses at its contract chip-making business.
The $7 billion in losses disclosed by Intel for its chip-making foundry in 2023 has raised concerns about the company's ability to compete effectively in the industry. This significant financial setback has underscored the wide gap between Intel and its rival, Taiwan Semiconductor Manufacturing Co., and suggests that it could take years for Intel to catch up with the profitability of its competitor.
The impact of Intel's struggles has been felt across the technology sector, with the tech-heavy Nasdaq Composite Index falling 1% on Tuesday and looking set to open lower again on Wednesday. Intel's stock slumped more than 4% in early premarket trading after it revealed the substantial losses incurred by its chip-making business, despite the growing demand for AI compute.
The losses in Intel's foundry business, which manufactures the company's proprietary semiconductor chips, have increased from $5.2 billion in the prior year. This trend has raised questions about Intel's ability to address its chipmaking shortcomings and regain its competitive edge in the industry.
Overall, Intel's $7 billion loss in its chip-making foundry has underscored the significant challenges the company faces in the semiconductor manufacturing sector. The financial setback has not only impacted Intel's stock performance but has also raised concerns about its ability to effectively compete with industry leaders such as Taiwan Semiconductor Manufacturing Co. and address the growing demand for AI compute.
About INTC
Intel Corporation engages in the design, manufacture, and sale of computer products and technologies worldwide. The company operates through CCG, DCG, IOTG, Mobileye, NSG, PSG, and All Other segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacent products, including accelerators, boards and systems, connectivity products, graphics, and memory and storage products. The company also provides high-performance compute solutions for targeted verticals and embedded applications for retail, industrial, and healthcare markets; and solutions for assisted and autonomous driving comprising compute platforms, computer vision and machine learning-based sensing, mapping and localization, driving policy, and active sensors. In addition, it offers workload-optimized platforms and related products for cloud service providers, enterprise and government, and communications service providers. The company serves original equipment manufacturers, original design manufacturers, and cloud service providers. Intel Corporation has a strategic partnership with MILA to develop and apply advances in artificial intelligence methods for enhancing the search in the space of drugs. The company was incorporated in 1968 and is headquartered in Santa Clara, California.For more information:
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