In 2023, Intel’s Foundry business is projected to face an operating loss of $7 billion, up from $5.2 billion in the previous year. The company aims to achieve break-even operating margins by 2030, with its Foundry business expected to experience its highest losses in 2024. Despite these challenges, Intel anticipates reaching 40% non-GAAP gross margins and 30% non-GAAP operating margins within the next seven years.
To support its turnaround efforts, Intel has announced 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, as well as boost revenue growth potential.
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 for investors who believe in the company’s potential to overcome its current challenges and continue growing in the future.
