Intel's Foundry Future in Jeopardy Amidst Strategic Shift
Intel experienced a 5% drop in premarket trading after revealing potential quarterly losses and indicating a possible withdrawal from its foundry business. Despite a strategic revamp by new CEO Lip-Bu Tan, concerns remain about the viability of its advanced manufacturing processes and competitive position against Nvidia and AMD.
Intel's stock saw a 5% decline in premarket trading Friday following the company's warning of deeper-than-expected quarterly losses and a possible exit from its foundry business. This comes despite newly appointed CEO Lip-Bu Tan's efforts to steer the company towards recovery.
Tan hinted at a potential departure from former CEO Pat Gelsinger's strategy, indicating a risk of Intel exiting the foundry business without investment backed by demand. Such a move could endanger $100 billion in assets while increasing reliance on TSMC.
Amid this uncertainty, Intel's stock has risen 12.8% this year, contrasting with Nvidia's and AMD's respective 30% and 34% gains. Tan has undertaken several initiatives, including divestitures and workforce reductions, to reposition Intel in the competitive chipmaking industry.
(With inputs from agencies.)
- READ MORE ON:
- Intel
- foundry
- business
- CEO
- Lip-Bu Tan
- chipmaker
- Nvidia
- TSMC
- AMD
- manufacturing
ALSO READ
STMicro Faces Setback: A Chipmaker's Restructuring Challenge
Race for AI Dominance: Nvidia's Strategic Chip Exports to China
China Questions Nvidia's H20 AI Chips Over Security Concerns
Nvidia Defends AI Chip Amidst Security Concerns in China
Nvidia's H20 Chips Under Scrutiny: China's Security Concerns Rise
Google News