Intel’s Foundry Business Continues to Bleed Billions Amid Strategic Shifts

Intel's foundry division remains a glaring weak spot as the chipmaker strikes a new partnership with Nvidia. The agreement grants Nvidia a 4% stake in Intel and access to its CPUs for AI servers, while Intel will integrate Nvidia's AI technology into its PC chips. On paper, the collaboration appears symbiotic—yet it conspicuously sidesteps the elephant in the room: Intel Foundry Services' catastrophic financial performance.

The unit, launched in 2021 to revitalize Intel's fading dominance by manufacturing chips for external clients, has become a money pit. Losses ballooned from $7 billion in 2023 to $13 billion in 2024, eviscerating investor confidence. The stock plummeted 60% last year, culminating in CEO Pat Gelsinger's ouster. Wall Street remains skeptical, with analysts like Angelo signaling deeper structural concerns.