Analysts believe that Intel is expected to become profitable by 2028, primarily due to growth in non-GAAP earnings and accounting adjustments.
An analysis article notes that chip giant Intel (Intel) is expected to return to annual profitability by 2028, with 2027 projected to be its first year back in the black.Although Intel reported a net loss of approximately $11.3 billion over the past 12 months, analysts believe this was primarily due to non-cash accounting charges, such as the mark-to-market revaluation of escrowed shares and goodwill impairments related to the CHIPS Act.The company’s revenue is growing at its fastest pace in 15 years, with gross margins expanding quarter over quarter. In the second quarter, non-GAAP (adjusted) net income reached $2.2 billion, and operating cash flow stood at $7 billion. Revenue from the Data Center and AI segment grew 59% year-over-year, the Client Computing segment grew 13%, and the Foundry segment grew 31%.Analysts note that the market may have already factored Intel’s earnings expectations into its stock price, so a wait-and-see approach is warranted at current levels.
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