Yet its foundry business has shown potential for improvement. Intel will turn that business into a separate subsidiary, giving it its own operating board and the ability to raise capital separately. Additionally, the aforementioned deal with AWS could help make Intel's foundry business a top company in its industry.

Intel shares surged in extended trading Monday after CEO Pat Gelsinger offered an update on the company’s plans to cut costs and bolster its manufacturing business.

While the broader Dow Jones Industrial Average ($DOWI) is trading at all-time highs, semiconductor giant Intel (INTC) is trailing the broader markets by a wide margin. The tech stock is down 70% from all-time highs after falling close to 58% in 2024.

Despite revenue growth, Intel reported $2.8 billion in operating losses in Q2 due to higher manufacturing costs. Explore more details here.

The $20 billion computer chip manufacturing facility that Intel is constructing in New Albany, Ohio, will be spun off into a new company as part of a restructuring to restore investor faith and save the company’s sinking stock prices.

We have tripled our deal pipeline since the beginning of the year,” CEO Pat Gelsinger said of Intel Foundry’s business in a blog post, noting that the AWS deal could potentially involve additional chip designs.