Intel’s stock dropped 9% after announcing plans to cut foundry costs, overshadowing a strong earnings report. The company beat revenue estimates and issued a strong sales forecast. CEO Lip-Bu Tan emphasized the need for confirmed customer commitments for future chip manufacturing. Intel faces challenges in the AI market dominated by Nvidia. Intel’s shares plunged, wiping out most of the year’s gains. The company is axing chip facility projects and slowing production in Ohio. Intel’s net loss widened, with an $800 million impairment charge. JPMorgan Chase sees Intel’s foundry decision as a positive step but remains concerned about market share losses.

Read more at CNBC: Intel drops 9% as chipmaker’s foundry business axes projects