Recently, Intel has successfully obtained three rounds of investments, amounting to a substantial $16 billion, from sources including the U.S. government, SoftBank, and NVIDIA. This influx of capital has propelled its stock price up by 48% since the beginning of the year and boosted its market capitalization by over $50 billion. Nevertheless, these financial injections have not managed to resolve Intel's core dilemma—its chip manufacturing business, which has been consistently operating at a loss.
In the second quarter of 2025, Intel reported a staggering net loss of $2.92 billion, accompanied by a decline in its gross margin to a mere 29.7%. While its foundry business managed to generate $820 million in revenue, it still suffered a loss of $1.25 billion. Although Intel has forged a partnership with NVIDIA to collaboratively develop products for data centers and personal computing, its foundry business continues to grapple with technological and capacity constraints. Its global market share stands at less than 3%, a stark contrast to TSMC's dominant 56%.