Intel's Foundry Business Shows Growth Amidst Stock Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2026
0mins
Source: NASDAQ.COM
- Foundry Growth: Intel's foundry segment grew by 4% last quarter, indicating potential in specific areas despite an overall revenue decline of 4%, highlighting the company's mixed performance in a competitive landscape.
- Profitability Issues: Despite the growth in the foundry business, Intel reported an operating loss of $2.5 billion, which is larger than the previous year's loss, underscoring the fragility of profitability in a challenging market.
- High Stock Valuation: Intel's stock trades at a staggering 85 times its expected future earnings, significantly higher than the S&P 500's average of 22 times, suggesting that the market's optimistic outlook may be overvalued, increasing investment risks.
- Market Volatility: Over the past 12 months, Intel's stock has more than doubled in value, yet it has recently dropped by 18%, reflecting the high volatility of the investment and prompting investors to carefully assess future buying opportunities.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 118.500
Low
20.00
Averages
39.30
High
52.00
Current: 118.500
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Supercycle: Businesses are projected to spend $1 trillion on upgrading data center infrastructure by 2025, driving demand for more powerful computers and providing Intel with sustained market opportunities.
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See More
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