Intel Warns It May Abandon Foundry Plans Without Customers, Ignites Retail Skepticism

Intel Corp. (INTC) announced it might scale back its plans to expand its chip-making business, raising new concerns about the future of its manufacturing strategy.

In a Securities and Exchange Commission filing, the company stated that it might suspend or abandon its foundry operations entirely if it fails to secure a significant client for its next-generation chips.

Following the disclosure, Intel stock traded 8% lower on Friday afternoon.

A Stocktwits user expressed uncertainty about the value of Intel's foundry business in a highly competitive market.

Another user expressed skepticism about the company.

In the second quarter of 2025, the company reported a $797 million non-cash charge related to accelerated depreciation and asset impairments of manufacturing equipment deemed no longer viable for current or future operations.

This significant write-down affected the performance of the Intel Foundry segment and stems from shifting expectations around demand for its existing process node technologies.

Intel admitted it has not yet secured a major external customer for any of its existing manufacturing nodes. 

According to a CNBC report, the lack of traction in the foundry business has cast doubt on the viability of its multi-billion-dollar pivot to become a contract chipmaker.

However, on Stocktwits, overall retail sentiment toward Intel improved to ‘extremely bullish’ from ‘neutral’ territory the previous day, and the message volume jumped as well to ‘extremely high’ from ‘normal’ levels in the last 24 hours. 

The user message count has increased by over 500% in the last 24 hours. Intel reported a loss of $0.10 per share and revenue of $12.9 billion in Q2.

Intel stock has gained over 2% year-to-date and has shed over 34% in the last 12 months.

Also See: Charter Buzzes With Bullish Chatter Despite Subscriber Drop And Mixed Q2 Results: Here’s Why

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on