• Sat. Apr 13th, 2024

Intel Faces $7 Billion Operating Loss in 2023, but Plans to Achieve Break-Even Margins by 2030 through Strategic Investments

BySamantha Jones

Apr 3, 2024
Operating Loss of $7 Billion Reported by Intel’s (NASDAQ:INTC) Foundry Business

Intel recently reported that its Foundry business faced an operating loss of $7 billion in 2023, a significant increase from the $5.2 billion loss in the previous year. Despite this setback, the company aims to achieve break-even operating margins by 2030, with expectations for its Foundry business to experience its highest operating losses in 2024. However, within the next seven years, Intel anticipates reaching 40% non-GAAP gross margins and 30% non-GAAP operating margins.

To support its turnaround efforts, Intel plans to invest $100 billion in constructing and expanding chip factories in four U.S. states. This initiative is 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.

In summary, Intel’s Foundry business is facing significant challenges but the company plans to overcome them through strategic investments and expansion plans. The analysts on Wall Street are holding a neutral position on Intel stock with mixed opinions about its future prospects.

Intel’s recent report revealed that its Foundry business faced an operating loss of $7 billion in 2023 compared to $5.2 billion in the previous year. Although this represents a significant increase in losses, Intel remains optimistic about achieving break-even operating margins by 2030 with expectations for its Foundry business to experience its highest losses in 2024.

Moving forward, Intel has made it clear that it will invest heavily in expanding and constructing new chip factories across four U.S states as part of their strategy to attract clients and showcase their manufacturing capabilities.

Despite a recent surge of growth with a 35% increase in share price over the past year, Wall Street analysts maintain a consensus hold rating on Intel stock with seven buys assigned within the past three months.

The average price target for INTC stock stands at $46.6 per share which indicates an upside potential of around six percent.

In conclusion

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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