Intel recently announced that its Foundry business had an operating loss of $7 billion in 2023, a significant increase from the previous year’s $5.2 billion. Despite this, Intel remains committed to achieving break-even operating margins by 2030 and anticipates its Foundry business will face its largest operating losses in 2024. However, the company expects to achieve 40% non-GAAP gross margins and 30% non-GAAP operating margins within the next seven years.
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.
Despite a 35% increase in its share price over the past year, 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. The average price target of $46.60 per share suggests a potential upside of only 6.05%.
