Intel: A Foundry Catalyst May Be Ahead
Summary
- A potential joint venture between Intel and TSMC, and some of its clients, could help the chipmaker mitigate losses in its foundry business, which lost $13.4B in FY 2024.
- Intel's restructuring has heavily weighed on its profitability as well as the chipmaker's valuation.
- IFS is losing money hand over fist, and a strategic deal may be required in order to stop the bleeding for Intel and its shareholders.
- Intel trades at a bargain valuation of 21X forward earnings, presenting a potential investment opportunity.
- A strategic solution to Intel's foundry losses could be a significant catalyst for its shares, potentially pushing Intel into a new up-leg.
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