Intel’s $7 Billion Foundry Business Loss Prompts $100 Billion Chip Factory Expansion and Revenue Forecast

Operating Loss of $7 Billion Reported by Intel’s (NASDAQ:INTC) Foundry Business

In 2023, Intel’s Foundry business reported an operating loss of $7 billion, which was a significant increase from the previous year’s loss of $5.2 billion. The company aims to achieve break-even operating margins by 2030, with expectations for its Foundry business to experience its highest operating losses in 2024. However, within the next seven years, Intel anticipates reaching 40% non-GAAP gross margins and 30% non-GAAP operating margins.

To support its turnaround efforts, Intel plans to invest $100 billion in constructing and expanding chip factories in four U.S. states. This initiative is crucial for the company to attract clients and showcase its manufacturing capabilities.

Despite a 35% increase in its share price over the past year, the average price target for INTC stock stands at $46.60 per share, indicating a 6.05% upside potential. On Wall Street, analysts have a consensus Hold rating on Intel stock, with seven Buys, 24 Holds, and four Sells assigned in the past three months.

Sophia Reynolds

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