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

Intel reported a loss of $7 billion in its Foundry business in 2023, compared to $5.2 billion in the previous year. Despite this, the company aims to achieve break-even operating margins by 2030. Analysts on Wall Street have given Intel a consensus Hold rating, with seven Buys, 24 Holds, and four Sells assigned in the past three months. The average price target for INTC stock stands at $46.60 per share, indicating a 6.05% upside potential.

In an effort to turn around its Foundry business, Intel plans to invest $100 billion in constructing and expanding chip factories in four U.S. states over the next seven years. This investment is crucial for the company to attract clients and showcase its manufacturing capabilities.

Despite this news, analysts on Wall Street remain optimistic about Intel’s future prospects. They predict that within the next seven years, Intel will reach 40% non-GAAP gross margins and 30% non-GAAP operating margins.

Overall, Intel’s Foundry business faced significant challenges in 2023, but with investments in manufacturing capabilities and continued growth goals, the company is well-positioned for success in the future.

By Riley Johnson

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