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

Byeditor

Apr 3, 2024

Chip maker Intel (NASDAQ:INTC) recently disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that its Foundry business had an operating loss in 2023 that deepened to $7 billion, up from $5.2 billion the previous year.

Intel is working towards achieving break-even operating margins by 2030 and anticipates that its Foundry business will face its largest operating losses in 2024. However, it expects to achieve 40% non-GAAP gross margins and 30% non-GAAP operating margins within the next seven years.

In order to drive its turnaround, Intel has ambitious 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.

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. Despite a 35% increase in its share price over the past year, the average price target of $46.60 per share suggests a 6.05% potential upside.

By editor

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