Intel's Foundry Grew 31% Last Quarter and Lost $2.1 Billion Doing It.
Written by Daniel Sparks for The Motley Fool -> Intel Foundry's second-quarter operating loss narrowed to $2.1 billion from $3.2 billion a year earlier, on revenue that rose 31% to $5.8 billion. Ex…
Intel Foundry's second-quarter operating loss narrowed to $2.1 billion from $3.2 billion a year earlier, on revenue that rose 31% to $5.8 billion.
External customers supplied $293 million of the foundry's quarterly revenue; the rest came from Intel's own chips.
Intel has pointed to 2027 for foundry break-even, and its finance chief has said that requires only a few billion dollars of additional external revenue.
Intel (NASDAQ: INTC) posted its fastest revenue growth in nearly 15 years last month, with second-quarter revenue rising 25% year over year to $16.1 billion. But the unit the company's whole transformation is staked on, Intel Foundry, is still deep in the red. The chipmaking arm lost $2.1 billion in the quarter on $5.8 billion of revenue.
The loss, I'd argue, is where the progress lives. A year ago, the foundry lost $3.2 billion on $4.4 billion of revenue -- about 72 cents lost for every dollar the unit brought in. This quarter it lost about 36 cents per dollar. The loss per dollar of revenue halved in a year.
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Intel has told investors the foundry should stop losing money in 2027, and the growth stock (up more than 160% in 2026 as of this writing) is priced as if that arrival is on schedule. So how much revenue does the foundry need before the losses stop?
The trend is now three quarters deep and pointed one direction. Intel Foundry's revenue climbed from $4.4 billion in the year-ago quarter to $5.4 billion in the first quarter of 2026 and $5.8 billion in the second. Its operating loss, meanwhile, narrowed from $3.2 billion to $2.4 billion and then $2.1 billion. And the second quarter's 31% year-over-year revenue growth was itself an acceleration, up from 16% in the first quarter.
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