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

Intel’s Foundry Business Faces Another Year of Operating Losses, but the Company Is Optimistic About Future Gross Margins

Intel (NASDAQ:INTC) recently announced that its Foundry business had an operating loss of $7 billion in 2023, up from $5.2 billion the previous year. Despite this, the company is working towards achieving break-even operating margins by 2030 and expects its Foundry business to face its largest operating losses in 2024. However, Intel anticipates achieving 40% non-GAAP gross margins and 30% non-GAAP operating margins within the next seven years.

To drive its turnaround, Intel plans to invest $100 billion in the construction and expansion of chip factories in four U.S. states. This strategic move is essential for attracting clients to its manufacturing capabilities and strengthening its position in the market.

Despite a 35% increase in its share price over the past year, analysts on Wall Street have a Hold consensus rating on Intel stock, with seven Buys, 24 Holds, and four Sells assigned in the past three months. The average price target of $46.60 per share suggests a potential upside of just over 6%.

However, despite these challenges, Intel remains a major player in the semiconductor industry and has a strong track record of innovation and growth. With continued investment and focus on improving its operations, Intel may be able to overcome these obstacles and continue to thrive in the years ahead.

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