Intel Stock Is Sliding After The Bell: What's Going On?

Intel Corp INTC shares are trading lower in Tuesday’s after-hours session after the company outlined a new financial framework for its foundry business.

What Happened: After the market close on Tuesday, Intel announced a new financial reporting structure designed to drive increased cost discipline and higher returns by providing greater transparency, accountability and incentives across the business.

Intel Foundry is a newly established operating segment that includes foundry technology development, foundry manufacturing and supply chain, and foundry services. Beginning with the first quarter 2024, Intel will report segment results aligned with the following operating segments: Client Computing Group, Data Center and AI, Network and Edge, Intel Foundry, Altera, Mobileye, and Other.

Intel said foundry operating losses are expected to peak in 2024. The company aims to achieve break-even operating margins midway between now and the end of 2030 in its foundry business. Foundry currently has an expected lifetime deal value with external customers of more than $15 billion.

“This model is designed to unlock significant cost savings, operational efficiencies and asset value. As it begins to take hold, we expect to accelerate on our path toward achieving our ambition of 60% non-GAAP gross margins and 40% non-GAAP operating margins in 2030,” said Dave Zinsner, CFO of Intel.

Intel also announced the appointment of Lorenzo Flores as CFO of Intel Foundry, effective April 8. Intel said Flores possesses nearly 30 years of financial experience in semiconductors and technology, including most recently as the CFO of Xilinx.

Intel will hold an investor webinar to present its new financial framework for the Intel Foundry business at 4:30 p.m. ET.

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INTC Price Action: Intel shares were down 3.60% after hours at $42.39 at the time of publication, according to Benzinga Pro.

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