About the Security (NASDAQ: INTC)
Intel Corporation is an American multinational technology company headquartered in Santa Clara, California. Intel designs, manufactures, and sells computer components such as central processing units and related products for business and consumer markets, according to Wikipedia. It was reportedly the world’s third-largest semiconductor chip manufacturer by revenue in 2024.
Stock background:
Intel shares have witnessed higher-than-average volume recently, with upward momentum picking up noticeably. From a low of around 19 at the start of this month, the stock has jumped to 26.50, roughly 40% in three weeks. Media reports indicate the US administration is considering a 10% stake in Intel. In a media interview, US Treasury Secretary Scott Bessent said a deal like this would be about boosting an American tech company, rather than making money from Intel.
Furthermore, SoftBank has agreed to invest $2 billion in Intel, saying that the strategic investment reflects its belief that advanced semiconductor manufacturing and supply will further expand in the US with Intel playing a critical role.
Intel has underperformed its peers, like Nvidia and AMD, in recent years on a mix of factors, including losses and failing to maintain a technological niche, especially in artificial intelligence chips. However, hopes of restructuring after the new CEO Lip-Bu Tan took over the company’s top post a few months ago, coupled with strategic tie-ups, could lay the foundation for a turnaround in the stock.
Intel (Weekly):
Technical Analysis on Intel (NASDAQ: INTC)
Our proprietary system, TradersGPS (TGPS), turned Bullish again. As per our system, Blue candles indicate the stock’s trend is up. Red candles indicate the trend is down. While this is not the first time in recent months that the system has turned bullish on the stock, what is different this time is the sharp upward momentum in the stock recently. Any break above resistance around 27-28 could put the stock on a meaningful uptrend. As the chart shows, the system nicely picked up the weakness when the downtrend began in 2024.
Intel (Daily):
On technical charts, Intel has been mired in a narrow range for a year. The upper edge of that range is a horizontal trendline from August 2024 (at about 27.75). The lower edge of the range is a horizontal trendline from November 2024 (around 18.50). A break above 27.75 would trigger a breakout from the sideways channel. As per technical analysis literature, a rough price objective following a breakout from a sideways channel is the width of the channel. The width of the channel indicates a potential move toward the July 2024 high of 37.00.
The risk is that this time around, too, the attempt to break above the channel proves to be futile. In such a case, the stock would fall back in the long-established range. On the downside, a break below 18.50 could open the door toward the 2009 low of 12.00.
