The Average Joe: Intel’s Multi-Billion Dollar US Foundry Expansion Is Killing Its Stock, But It Could Also Save Its Future

Semiconductor manufacturers have been a big hit with the market over the past year. While most of these companies aren’t profitable, they’re positioning themselves to sell AI chips. With soaring demand for all things AI, the future looks bright.

But then there’s Intel (INTC). One the leading semiconductor manufacturer in the 1990s, it’s moved to the wayside. Other competitors have fared better.

Intel just reported a $400 million loss, even as revenues rose by 9%.

The good news? Intel’s Gaudi 3 AI chip has better specs than Nvidia’s (NVDA) H100 chip. It’s currently clocking in at 50% and also 40% more power efficient.

Plus, in 2026, Intel plans to open the first US fabrication plant in over four decades. And it has plans to build as many as six more. That will make it the world’s second largest fabrication maker.

However, while this fab plant buildout is playing out, they’re unlikely to be profitable.

If this plan pays off, shares could start trending far higher. Investors could simply buy Nvidia, or another big chipmaker that’s already trending higher.

But Intel is a speculative play today on the potential future of the chip space in the coming years. That could make it a far better investment in the chip space today, especially compared to competitors.

To read the full analysis, click here.