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

Intel, a chip manufacturer, recently announced that its Foundry business faced an operating loss of $7 billion in 2023, compared to $5.2 billion in the previous year. Despite this setback, the company aims to achieve break-even operating margins by 2030. To support its turnaround efforts, Intel plans to invest $100 billion in constructing and expanding chip factories in four U.S. states.

Intel’s Foundry business is expected to experience its highest operating losses in 2024, but within the next seven years, the company anticipates reaching 40% non-GAAP gross margins and 30% non-GAAP operating margins. This investment will be 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.

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