Intel’s $7 Billion Loss in 2023: Will $100 Billion Investment Turn Around Its Foundry Business?

By Eleanor Harrison Apr3,2024
Operating Loss of $7 Billion Reported for Intel’s Foundry Business (NASDAQ:INTC)

In 2023, Intel (NASDAQ:INTC) reported a $7 billion operating loss in its Foundry business, which was a significant increase from the previous year’s loss of $5.2 billion. Despite this setback, the company is determined to achieve break-even operating margins by 2030. However, it anticipates that its Foundry business will face its largest operating losses in 2024.

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 and expanding its market share.

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 for investors looking for long-term growth opportunities with this global leader in semiconductor technology.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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