Intel's $23 Billion Raise May Signal Foundry Progress

This article first appeared on GuruFocus.

The chipmaker Intel Corp. (INTC, Financials), seeking to restore its foundry division may be showing actual indications of improvement after raising $23 billion this week.GF Securities said the offering appears constructive on the back of rising yields, more client involvement and ongoing equipment investment.The firm forecasts Intel Foundry to be cash flow break-even in Q4 of 2027 with improved margins in 2028. Analyst Jeff Pu also cited strong 18A yields and client engagement, especially from Apple.Intel's EMIB packaging business might possibly expand beyond Google to AWS and others. GF forecasts EMIB revenues to be roughly $1.1 billion in 2027 and up to $7 billion in 2028.Intel had originally expected to raise $15 billion, but the size was boosted to $23 billion because of tremendous demand.The greater concern for investors is whether the new money can translate foundry advances into considerable revenue growth.