Intel's Foundry Grew 31% Last Quarter and Lost $2.1 Billion Doing It.
The factory arm loses half as much per revenue dollar as it did a year ago -- and almost every one of those dollars is still Intel's own.
Overview
Intel (NASDAQ: INTC) posted its fastest revenue growth in nearly 15 years last month, with second-quarter revenue rising 25% year over year to $16.1 billion. But the unit the company's whole transformation is staked on, Intel Foundry, is still deep in the red. The chipmaking arm lost $2.1 billion in the quarter on $5.8 billion of revenue.
The loss, I'd argue, is where the progress lives. A year ago, the foundry lost $3.2 billion on $4.4 billion of revenue -- about 72 cents lost for every dollar the unit brought in. This quarter it lost about 36 cents per dollar. The loss per dollar of revenue halved in a year.
Details
Intel has told investors the foundry should stop losing money in 2027, and the growth stock (up more than 160% in 2026 as of this writing) is priced as if that arrival is on schedule. So how much revenue does the foundry need before the losses stop?
Source
Originally published at www.fool.com.