• Thu. Apr 25th, 2024

Intel’s Foundry Business Faces $7 Billion Operating Loss in 2023, But Company Plans to Invest Big in Chip Factory Expansion for Turnaround Efforts

BySamantha Nguyen

Apr 3, 2024
Operating Loss of $7 Billion Reported by Intel’s (NASDAQ:INTC) Foundry Business

Intel has reported that its Foundry business is facing an operating loss of $7 billion in 2023, compared to $5.2 billion in the previous year. To achieve break-even operating margins by 2030, the company expects its Foundry business to experience its highest operating losses in 2024. However, Intel anticipates reaching 40% non-GAAP gross margins and 30% non-GAAP operating margins within the next seven years.

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.

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. 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.

Intel’s Foundry business faced an operating loss of $7 billion in 2023 compared to $5.2 billion in the previous year.

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.

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.

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.

Despite a

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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