Intel stock jumped 9% on Friday on reports that the company might sell or spin off its foundry business
@Tiger_James Ooi：
I remain pessimistic about Intel. Investing in or trading Intel simply isn't worth the risk. Intel’s Foundry segment has a staggering operating margin of -65.5%, meaning that for every $10,000 wafer sold, Intel incurs a loss of $6,550. In contrast, TSMC boasts an impressive operating margin of 42.55%. Therefore, I doubt any company would be interested in acquiring a foundry business with a -65.5% operating margin, nor do I believe investors would want to invest in Intel to become future shareholders of a spun-off foundry company that is deep in losses. Investors should favor TSMC, Broadcom, Nvidia, ARM, ASML, and AMD instead.
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