{"id":25400,"date":"2023-06-21T07:11:28","date_gmt":"2023-06-21T11:11:28","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/intel-stock-drops-as-foundry-capacity-buildout-plans-have-one-analyst-predicting-a-company-split\/"},"modified":"2023-06-21T07:11:29","modified_gmt":"2023-06-21T11:11:29","slug":"intel-stock-drops-as-foundry-capacity-buildout-plans-have-one-analyst-predicting-a-company-split","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=25400","title":{"rendered":"Intel stock drops as foundry capacity buildout plans have one analyst predicting a company split"},"content":{"rendered":"
\n

Intel Corp.\u2019s shares underperformed peers, and led the Dow Jones Industrial Average lower Tuesday, following announcements of a capacity buildout ahead of a presentation to investors Wednesday. <\/p>\n

Intel\u2019s
\n INTC,
\n -3.77%<\/bg-quote>
\n shares finished down 3.8% at $35, making them the worst performer on the Dow Jones Industrial Average
\n DJIA,
\n -0.72%<\/bg-quote>
\n on Tuesday. The Dow finished down 0.7%, compared with a 0.7% decline by the PHLX Semiconductor Index
\n SOX,
\n -0.70%<\/bg-quote>
\n and a 0.5% decline by the S&P 500 index
\n SPX,
\n -0.47%<\/bg-quote>.<\/span>\n <\/p>\n

\n

In a note Tuesday, UBS analyst Timothy Arcuri said he expects Intel to provide an update on its product roadmap and customer adoption of its foundry services business, or IFS, on Wednesday.<\/p>\n

Intel confirmed reports from over the weekend that it was building new foundry capacity in Germany, Poland and Israel. <\/p>\n

From last week: <\/strong>Intel\u2019s stock rocks best week in nearly 14 years as analyst notes a \u2018material AI opportunity\u2019<\/p>\n

\u201cWe have long argued that if Intel is truly going to pursue an external foundry model \u2014 which at this point would be hard to backpedal from given its pending acceptance of significant amounts of Chips Act money \u2014 it needs to cleave the manufacturing assets from the product businesses,\u201d Arcuri said. <\/p>\n

\u201cEssentially, we argue Intel likely splits into a foundry business and a fabless product business, and the segment P&L is a big first step.\u201d Arcuri said. \u201cSuch a separation is necessary because there is not a single potentially significant customer that tells us they would make a big commitment to Intel foundry as long as it would be competing with Intel for the best wafers, highest yielding lots, etc.\u201d<\/p>\n

Intel uses its own foundries \u2014 or fabs, those high-tech plants that create the silicon wafers onto which transistors are etched to make microchips \u2014 unlike other chip makers that are \u201cfabless\u201d like Nvidia Corp.
\n NVDA,
\n +2.61%<\/bg-quote>,<\/span>
\n Advanced Micro Devices Inc.
\n AMD,
\n -0.96%<\/bg-quote>,<\/span>
\n and Apple Inc.
\n AAPL,
\n +0.05%<\/bg-quote>.<\/span>
\n Those companies use third-party fabs like Taiwan Semiconductor Manufacturing Co.
\n TSM,
\n -0.56%<\/bg-quote>
\n for their chips.<\/p>\n

Read: <\/strong>TSMC stock gains on report that Nvidia AI-chip order has boosted production<\/p>\n

Since Chief Executive Pat Gelsinger took over the reins of Intel back in 2021, one of his aims has been to build out fab capacity and take some share from TSMC in third-party foundry work through IFS.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Intel Corp.\u2019s shares underperformed peers, and led the Dow Jones Industrial Average lower Tuesday, following announcements of a capacity buildout ahead of a presentation to investors Wednesday. Intel\u2019s INTC, -3.77% shares finished down 3.8% at $35, making them the worst performer on the Dow Jones Industrial Average DJIA, -0.72% on Tuesday. The Dow finished down […]<\/p>\n","protected":false},"author":1,"featured_media":25401,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-25400","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nIntel stock drops as foundry capacity buildout plans have one analyst predicting a company split | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Intel Corp.\u2019s shares underperformed peers, and led the Dow Jones Industrial Average lower Tuesday, following announcements of a capacity buildout ahead of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=25400\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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