Intel recently announced in a regulatory filing with the U.S. Securities and Exchange Commission that its Foundry business had an operating loss of $7 billion in 2023, an increase from $5.2 billion the previous year. The company is working towards achieving break-even operating margins by 2030 and anticipates its Foundry business will face its largest operating losses in 2024. However, Intel 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 crucial 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.
