Analyst Identifies ‘Problem Child’ of Intel Corporation’s (Intc) Business
Intel Corporation's foundry business is facing significant losses, with a $13 billion loss last year and an expected $5 billion loss this year. The business segment is struggling to compete with other manufacturers, leading to underperformance in the company's stock price. However, analyst Srini Pajjuri expects the product business alone could be worth around $32 a share after a potential split.
- This scenario highlights the importance of diversification within companies and the need for effective leadership to manage risk and capitalize on opportunities.
- Will Intel's foundry business be able to recover and regain profitability, or will the company need to consider strategic options, such as mergers or acquisitions, to revitalize its manufacturing operations?