Intel’s Manufacturing Woes Persist Despite Nvidia Deals and US Subsidies
Intel's stock briefly surged 8% in premarket trading before retreating as analysts highlighted ongoing challenges in its manufacturing segment. The company's foundry business, opened to external customers in 2021, remains unprofitable with a $2.3 billion loss on $4.2 billion revenue last quarter—narrower than 2022's $5.8 billion deficit but still troubling.
Bernstein's Stacy Rasgon warns against premature optimism: "We understand the desire to claim victory for the embattled company, but this fight is far from over." Only $8 million of foundry revenue came from external clients, revealing Intel's continued reliance on internal demand. The much-touted 18A manufacturing process failed to attract third-party chip designers, now relegated primarily to internal use.
