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Jim Cramer, the host of CNBC’s “Mad Money,” spotlighted Intel Corporation’s (NASDAQ:INTC) staggering $18.8 billion loss in its foundry division in 2024, despite receiving $8.5 billion in U.S. CHIPS Act subsidies.
Cramer took to X on Wednesday to highlight the financial challenges of domestic semiconductor manufacturing in the face of global competition. He questioned whether producing chips in the U.S. is sustainable, citing Intel’s substantial losses despite receiving government subsidies.
Check out the current price of INTC stock here.
“You want to build semis here? We sell your stock,” he stated.
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Intel’s financial woes have been a topic of concern amid its ambitious 18A chip project. This project, which is crucial for regaining its technological edge, has reportedly encountered yield issues, threatening its ability to profitably produce advanced chips.
The 18A process, developed over several years and backed by multibillion-dollar factory investments, underpins Intel’s plan to become a top-tier foundry rivaling Taiwan Semiconductor Manufacturing Co. (NYSE:TSM). However, only a small fraction of 18A-produced Panther Lake chips have met quality standards, raising concerns over Intel’s readiness to deliver high-end components at scale.
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Intel’s financial struggles have been further compounded by intense competition from rivals like Advanced Micro Devices (NASDAQ:AMD) and Qualcomm Inc. (NASDAQ:QCOM).
Fitch Ratings downgraded Intel’s long-term credit rating from BBB+ to BBB, citing the company’s ongoing struggle to maintain demand for its semiconductor products.
Intel posted second-quarter revenue of $12.86 billion, surpassing analyst expectations of $11.91 billion. However, the company reported an adjusted loss of 10 cents per share for the quarter, falling short of analysts’ forecast of a one-cent profit. The revenue for the foundry division was $4.4 billion, up 3% year-over-year.
