Data News > Intel's Ambitious Goals Come at a Cost
- UBS raised its price target on Intel stock from $46 to $50 per share
- Intel's chipmaking shortcomings are evident in its latest financial results
- Intel shares fell 5% as losses in its contract chip-making business were revealed
- Intel disclosed $7 billion in losses for its chip-making foundry in 2023
- The tech-heavy Nasdaq Composite Index fell 1% and looked set to open lower again Wednesday
Intel's CEO recently announced ambitious goals for the company, but they come with a cost. UBS raised its price target on Intel stock from $46 to $50 per share, indicating a potential 14% increase. However, the firm maintained a neutral rating on the stock. Despite Intel's ambition to fortify its presence in the semiconductor manufacturing sector, the company's latest financial results reveal significant shortcomings in its chipmaking business.
Intel's shares fell 5% before the bell on Wednesday, as the company disclosed ballooning losses at its contract chip-making business. This spotlighted the wide gap between Intel and its rival, Taiwan Semiconductor Manufacturing Co. The $7 billion loss in Intel's chip-making foundry in 2023 is a significant setback for the company, especially in the competitive realm of artificial intelligence.
The revelation of the $7 billion loss in Intel's chip-making business has had a negative impact on the company's stock. Despite burgeoning demand for AI compute, Intel's stock slumped more than 4% in early premarket trading. The losses in the foundry business, which manufactures Intel's proprietary semiconductor chips, increased from $5.2 billion in the prior year.
The technology sector as a whole has been facing challenges, with the tech-heavy Nasdaq Composite Index falling 1% and looking set to open lower again. This has contributed to the tough start to the quarter for technology stocks, including Intel. The company's ambitious goals are commendable, but the significant losses in its chip-making business raise concerns about its ability to catch up with competitors in the semiconductor industry.
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Intel's Ambitious Goals Come at a Cost
By KlickAnalytics Data Insights | April 3, 2024 10:01AM ET
Key Points
- UBS raised its price target on Intel stock from $46 to $50 per share
- Intel's chipmaking shortcomings are evident in its latest financial results
- Intel shares fell 5% as losses in its contract chip-making business were revealed
- Intel disclosed $7 billion in losses for its chip-making foundry in 2023
- The tech-heavy Nasdaq Composite Index fell 1% and looked set to open lower again Wednesday
Intel's CEO recently announced ambitious goals for the company, but they come with a cost. UBS raised its price target on Intel stock from $46 to $50 per share, indicating a potential 14% increase. However, the firm maintained a neutral rating on the stock. Despite Intel's ambition to fortify its presence in the semiconductor manufacturing sector, the company's latest financial results reveal significant shortcomings in its chipmaking business.
Intel's shares fell 5% before the bell on Wednesday, as the company disclosed ballooning losses at its contract chip-making business. This spotlighted the wide gap between Intel and its rival, Taiwan Semiconductor Manufacturing Co. The $7 billion loss in Intel's chip-making foundry in 2023 is a significant setback for the company, especially in the competitive realm of artificial intelligence.
The revelation of the $7 billion loss in Intel's chip-making business has had a negative impact on the company's stock. Despite burgeoning demand for AI compute, Intel's stock slumped more than 4% in early premarket trading. The losses in the foundry business, which manufactures Intel's proprietary semiconductor chips, increased from $5.2 billion in the prior year.
The technology sector as a whole has been facing challenges, with the tech-heavy Nasdaq Composite Index falling 1% and looking set to open lower again. This has contributed to the tough start to the quarter for technology stocks, including Intel. The company's ambitious goals are commendable, but the significant losses in its chip-making business raise concerns about its ability to catch up with competitors in the semiconductor industry.
For more information:
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