Should You Buy Intel Stock as Its Foundry Turnaround Takes Shape?
Intel's foundry business may turn a profit in the near future.
Overview
Intel's (NASDAQ: INTC) comeback has been quite a sight to behold. As of this writing, shares of the chipmaker have exploded by more than 220% in 2026 in part due to surging demand for the company's CPUs, but also due to increased optimism about the outlook for its foundry business. And even with that incredible run-up behind it, patient investors may still want to consider buying Intel's stock.
Intel's second quarter was one of its best in several years. Revenue jumped by 25% year over year to more than $16 billion. Intel's gross margin also improved tremendously, rising to 40.4% from 27.5%.
Details
The bigger story here is Intel's foundry division and the turnaround happening within it. Intel Foundry's revenue was nearly $6 billion in the quarter, and its output paced 25% above the target. While the segment posted a $2.1 billion loss, the gap is narrowing. Foundry revenue from external customers was just $293 million, which means that if its turnaround is to gain steam, Intel really needs to win more business from outside clients.
Source
Originally published at www.fool.com.
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