The post Nvidia’s $5B stake won’t fix Intel’s biggest headache, which is manufacturing losses appeared on BitcoinEthereumNews.com.

Intel’s stock shot up 30% on Thursday after Nvidia revealed it was buying a $5 billion stake, as Cryptopolitan reported. But the hype around that investment ignores one big problem: Intel’s foundry business is still losing money… a lot of it. That part of the company wasn’t even mentioned in the deal. Not once. And that silence says everything. The agreement gives Nvidia a 4% stake in Intel. It also lets Nvidia use Intel’s CPUs in its AI data center servers. On the flip side, Intel will start using Nvidia’s AI tech inside its personal computer chips. The plan sounds clean on paper. But it completely avoids the area most investors and Washington have been worried about for years — Intel’s contract chipmaking unit, Intel Foundry Services. And no, this isn’t some small side operation. This is the division that’s bleeding billions of dollars, year after year. Intel’s foundry business keeps losing billions with no turnaround in sight Intel used to only make chips for itself. But in 2021, then-CEO Pat Gelsinger opened up the company’s manufacturing to outside clients. That’s when Intel Foundry Services was born. The idea was to spend hundreds of billions of dollars building new factories so Intel could produce chips for other companies. It was supposed to be a comeback play after Intel started losing market share. But the plan didn’t work. The business failed to attract major customers. As a result, Intel Foundry Services lost $7 billion in 2023. And in 2024, the losses jumped to $13 billion. That’s nearly double in one year. These numbers spooked investors and crushed the company’s stock. Intel’s shares plunged 60% last year. By December, Pat was out. The board fired him. Wall Street analysts are still worried. Angelo Zino from CFRA said, “This is a business that…

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Filed under: News - @ September 21, 2025 8:25 pm