Intel (INTC -2.50%) stock slid 3.3% through 11:20 a.m. ET Wednesday after Reuters reported a shift in the company's foundry business plan. Intel may be preparing to cease marketing its "18A" chipmaking process (which is to say, making 1.8-nanometer semiconductor chips) to outside customers, and write off its investment in that process.

Instead, Intel would focus on more advanced 14A process (1.4 nm) for its foundry customers, while continuing to develop 1.8-nm chips in-house.

Image source: Getty Images.

Bad news or good news?

New CEO Lip-Bu Tan has commented that customers seem less than enthusiastic over Intel's 18A chips -- which is kind of a disappointment after Intel invested "billions of dollars" in the process. Industry experts are predicting the change in focus will cost Intel "hundreds of millions, if not billions, of dollars" in write-offs. However, if Intel can keep making 1.8-nm chips on its own, the write-downs may be less fierce.

Intel may not have yet made a final decision to change tack, reserving that for a board meeting later this month. In the meantime, Intel is declining to comment on "hypothetical scenarios or market speculation."

Is Intel stock a sell?

Intel reported its first generally accepted accounting principles (GAAP) net loss in nearly 40 years last year. Analysts forecast the company will lose money (but less money) this year, and next year as well, before returning to profitability. The company is betting big on 18A and 14A to catch up to rival chipmakers such as Taiwan Semiconductor, but as today's news shows, it's not an easy task.

Valued at more than $100 billion, carrying more than $50 billion in debt, and with $21 billion in cash, Intel's still a giant company. But until it's proven it can be a giant, profitable company again, I can't recommend buying the stock.