⚠ Thirty Billion Dollars of Losses in Three YearsHigh threat

Intel (INTC) — threat to the moat

Intel's factories lost about $30.7 billion from 2023 to 2025, more in 2024 than its product groups earned.

The foundry's losses are large enough to decide Intel's results. Intel Foundry lost $7,083 million in 2023, $13,291 million in 2024 and $10,318 million in 20251. In 2024 the loss was larger than the $13,008 million the product groups earned2, and Intel reported a net loss of $18,756 million3.

Operating income, 2024 ($M)13,008Intel Products-13,291Intel Foundry-11,678Intel totalIntel Form 10-K FY2025; FY2025 results release
In 2024 the factories lost more than the products made.

Part of the loss is structure. The foundry carries the substantial majority of the company's depreciation4, and sells to Intel's product groups at internal prices, so the split between segments is an accounting choice. But the combined business also lost money: Intel's operating loss was $11,678 million in 2024 and $2,214 million in 20255.

Improvement has started. The foundry's second-quarter 2026 operating loss was $2,089 million, down from $3,168 million a year earlier6.

Depreciation is the heart of the loss and will not shrink quickly. Intel estimates the substantial majority of its consolidated depreciation is incurred by the foundry7, and net property, plant and equipment was $105,414 million at the end of 20258. That plant will be depreciated for years whether or not it is full, which is why volume, not cost-cutting, is the only lasting cure.

What matters is the foundry loss for full-year 2026. A figure below $8 billion would say the improvement is structural; a figure near 2025's would say the second quarter was the shortage.

References
  1. ReportedIntel Foundry lost $7,083 million in 2023, $13,291 million in 2024 and $10,318 million in 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  2. ReportedIn 2024 the loss was larger than the $13,008 million the product groups earned, and Intel reported a net loss of $18,756 million.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  3. ReportedIn 2024 the loss was larger than the $13,008 million the product groups earned, and Intel reported a net loss of $18,756 million.
    Intel fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - statements, capital spending and adjusted free cash flow. — FY2025 · publ. 22 January 2026 · source ↗
  4. ReportedThe foundry carries the substantial majority of the company's depreciation, and sells to Intel's product groups at internal prices, so the split between segments is an accounting choice.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  5. ReportedBut the combined business also lost money: Intel's operating loss was $11,678 million in 2024 and $2,214 million in 2025.
    Intel fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - statements, capital spending and adjusted free cash flow. — FY2025 · publ. 22 January 2026 · source ↗
  6. ReportedThe foundry's second-quarter 2026 operating loss was $2,089 million, down from $3,168 million a year earlier.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  7. ReportedIntel estimates the substantial majority of its consolidated depreciation is incurred by the foundry, and net property, plant and equipment was $105,414 million at the end of 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  8. ReportedIntel estimates the substantial majority of its consolidated depreciation is incurred by the foundry, and net property, plant and equipment was $105,414 million at the end of 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
Sources
Generated September 25, 2026