Dave Zinsner, Intel chief financial officer, said, “This model is designed to unlock significant cost savings, operational efficiencies and asset value. As it begins to take hold, we expect to accelerate on our path toward achieving our ambition of 60% non-GAAP gross margins and 40% non-GAAP operating margins in 2030. Ultimately, improved cost competitiveness will help us deliver process technology, product and foundry leadership while driving significant financial upside for Intel and our owners.”

By Emily Bary Intel breaks out its product and foundry financials, showing investors their different margin profiles Intel Corp.’s foundry business posted a $7 billion operating loss last year, and the chip company expects losses for that part of its business to peak this year. That’s according to new disclosures made by Intel (INTC) as part of a resegmentation of its business. The company is breaking out the performance of its product and foundry businesses in a bid to help investors better understand the value of each one. Intel’s foundry operating loss steepened in 2023 compared with the $5.2 billion loss that the company posted on the metric in 2022. The company attributed the difference in large part to lower internal revenue for the unit, which in turn weighed on profit potential. The foundry business generated $18.9 billion in revenue in 2023, compared with $27.5 billion in 2022. Shares of

UBS analyst Timothy Arcuri maintains Intel (NASDAQ:INTC) with a Neutral and raises the price target from $46 to $50.