Latest news with #INTC
Yahoo
13 hours ago
- Business
- Yahoo
Watch These Intel Price Levels as Chipmaker Set to Report Earnings This Week
Key Takeaways Intel shares will be in the spotlight this week as the embattled chipmaker gets set to release its second-quarter results on Thursday. The stock has recently retraced toward the lower trendline of an ascending channel on declining trading volume, indicating apprehension ahead of the earnings report. Investors should watch crucial support levels on Intel's chart around $22 and $19, while also monitoring resistance levels near $26 and $ (INTC) Intel shares will be in the spotlight this week as the embattled chipmaker gets set to release its second-quarter results on Thursday. Investors will be looking for updates about the company's foundry business after reports surfaced earlier this month that recently installed CEO Lip-Bu Tan is considering a shift in the company's contract chipmaking business. The possible changes could lead Intel to write off hundreds of millions or even billions of dollars' worth of chipmaking technology as a loss, according to reports. Intel shares have gained 20% since last month's low and trade 15% higher since the start of the year as of Friday's close, boosted by hopes that the chipmaker can navigate a successful turnaround under Tan's leadership after months of deal speculation and strategic restructuring. Below, we take a closer look at Intel's chart and use technical analysis to identify crucial price levels worth watching out for ahead of the quarterly report. Ascending Channel in Focus After attracting buying interest around the floor of a multi-month trading range, Intel shares have trended higher within an ascending channel. More recently, the stock has retraced toward the pattern's lower trendline on declining trading volume, indicating apprehension ahead of the highly anticipated earnings report. However, in a win for the bulls, the relative strength index remains above neutral territory, signaling positive price momentum. Let's identify crucial support and resistance levels on Intel's chart that investors will likely be watching. Crucial Support Levels to Watch A breakdown below the ascending channel's lower trendline could see the shares initially test support around $22. This area, currently just above the closely watched 200-day moving average, may attract buyers near a horizontal line that stretches back to the stock's notable gap lower last August. Selling below this level opens the door for a retest of lower support at $19. Investors could view this region as a high probability buying area near a trendline that connects multiple troughs on the chart between August and June and marks the floor of the stock's multi-month trading range. Resistance Levels to Monitor A breakout above the ascending channel's upper trendline could see the price climb to overhead resistance around $26. The shares may run into selling pressure in this location near three prominent peaks that developed on the chart between November and March. Finally, a more bullish move in Intel shares could propel a rally toward $30. Investors who bought at lower prices may decide to lock in profits at this level near the psychological round number and a period of sideways drift that preceded last August's stock gap lower. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Business Insider
2 days ago
- Business
- Business Insider
Intel (INTC) Investors Stay Torn Between Dead Money Doubts and Recovery Hopes
Intel's (INTC) stock has been stuck in the mud, trading at depressed, multi-year-low levels of around $22 today, all while the broader semiconductor industry is on fire, with names like NVIDIA (NVDA) and TSMC (TSM) soaring. Despite the stock appearing like a value play here, Intel's issues, such as fierce competition, a struggling foundry business, and macroeconomic headwinds, are weighing heavily. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. There are glimmers of hope, such as new AI products and cost-cutting efforts, but for now, the negatives overshadow any bullish case, making INTC a risky bet, even as a value play. Given the sorry state of affairs this stock finds itself in, I remain warily Neutral on INTC with a bearish bias. Why Intel's Stock Is Languishing Intel has been navigating a challenging period, and the bearish sentiment is far from unwarranted. AMD has steadily eroded its dominance in the CPU space, with Intel's server CPU market share falling to around 60% in 2024, down from over 80% a decade ago. Meanwhile, its foundry ambitions, aimed at rivaling TSMC, have become a financial drag. The division reported a staggering $7 billion loss on $18.9 billion in revenue in 2023, followed by another $4.3 billion in losses in 2024. The company's profit margin profile is also dismal, with gross margins at about 33% over the past 12 months, down from roughly 34%, 42%, and 45% in FY2024, FY2023, and FY2022, respectively. Geopolitical risks are another gut punch, as tariffs could further erode margin over the near to medium term. Some Reasons to Stay Hopeful Now, look, it's not all bad news. Intel's latest earnings displayed some resilience, with $12.7 billion in revenue topping estimates of $12.25 billion and adjusted EPS of $0.13, which surpassed forecasts of a break-even result. The Data Center and AI segment grew 8% year-over-year to $4.1 billion, a sign that Intel's AI pivot, including the Xeon 6 processor with a 1.9x performance leap for AI workloads and upcoming Panther Lake chips, is starting to click. Intel's also leaning into U.S. manufacturing, with $50 billion invested in domestic plants and $7.86 billion from the CHIPS Act, which could shine if U.S.-focused policies gain traction. Lip-Bu Tan, Intel's new CEO, is also bringing a fresh vibe, aiming to cut $500 million from 2025 operating expenses (down to $17 billion) and aiming for $16 billion in 2026. His push for a 'startup mindset' with less bureaucracy and more engineering could spark innovation. Intel's AI PC strategy is another potential win, with plans to ship 100 million AI PCs by year-end, assuming demand picks up. These are solid steps, but they need to deliver. Excessive Risk Suggests a Pass on INTC Despite a few encouraging signs, Intel is still falling behind in a semiconductor market that's otherwise surging. NVIDIA has a firm grip on the AI chip space, and TSMC's manufacturing edge is hard to beat. With NVIDIA's CUDA platform and Blackwell chips setting the tone, Intel's decision to outsource key products like Lunar Lake to TSMC only highlights how much ground it has to make up in its foundry ambitions. Losses are expected to persist until at least 2030, and Intel's Q2 2025 revenue guidance of $11.2-$12.4 billion fell short of the $12.82 billion consensus. Another outlook miss is likely in Q3, given macro risks, especially given the tariffs. Meanwhile, the stock's low price-to-sales ratio screams value (at 2x this year's expected sales). This is counterbalanced by a forward P/E of 78x on this year's expected earnings, which, again, reflects shaky earnings and high risk. Of course, the P/E falls to a more reasonable 29x on 2026's rebound potential to $0.80. Still, that's a high P/E ratio given the current risk Intel faces in the semiconductor landscape. Additionally, Intel's significant $28.6 billion net debt position further adds to the reasons to avoid the stock. Even if Intel manages to recover and generate noteworthy profits, it will be a while before investors see tangible capital returns, as management will likely prioritize deleveraging first. Is Intel a Buy, Sell, or Hold? Currently, analysts remain skeptical about INTC's investment case. The stock carries a Hold consensus rating, based on one Buy, 26 Holds, and four Sell ratings assigned over the past three months. Today, INTC's average stock price target of $21.60 implies roughly 5% downside potential over the next twelve months. In fact, the only bullish analyst on Wall Street is Gus Richard from Northland Securities, who expects INTC stock to hit $28 within 12 months. Intel: A Cheap Stock with a Pricey Set of Problems In short, Intel's story is one of potential buried under a mountain of problems. Yes, there are flickers of innovation and strategic pivoting, from AI PCs to domestic fabs, but execution risk remains sky-high. For every green shoot, there's a red flag, like underwhelming guidance, foundry losses, stiff competition, and debt that can't be ignored. At $22, the stock appears to be cheap, but cheap doesn't always mean it's investable. Until Intel proves it can consistently deliver on growth, profitability, and innovation, this remains a 'show-me' story in a market that rewards execution, not promises.
Business Insider
3 days ago
- Business Insider
'Summer Heat' Proves Raptor Lake Killer, Intel Stock (NASDAQ:INTC) Gains Regardless
While indeed, the heat this summer has been rough in some places—perhaps more so than in others—there is one place that summer heat probably should not be such an issue: chip stock Intel's (INTC) product line. But a Firefox engineer is sounding a wildly unexpected warning, one that Intel shareholders do not seem to be taking to heart. Intel shares were actually up nearly 2% in Friday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Right now in Europe—where summer is in full swing—a heatwave is in progress. And that heatwave is bringing with it an unexpected failure in Raptor Lake chips. Gabriele Svelto, a senior staff engineer working on the Mozilla browser, brought up the issue out at Mastodon. Svelto noted 'If you have an Intel Raptor Lake system and you're in the northern hemisphere, chances are that your machine is crashing more often because of the summer heat.' While these are not full system crashes—rather, browser crashes—the news comes from a series of compiled crash reports that seem to be coming from places that are unusually hot. Svelto continued, noting 'Things are so bad at this time that we had to disable a bot that was filing crash reports automatically because it was almost only finding crashes from people with affected systems.' Other explanations, like system cooler issues, could be in play, but the crash reports correlating to heat maps is an unsettling development. Upgrade Canceled While Raptor Lake chips are turning downright crispy in this heat, there is another lake with a bit of a problem: Arrow Lake. A recent leak revealed that the Arrow Lake-S update, set to arrive in late 2025, may not provide the improvements in artificial intelligence (AI) capability that was initially hoped. Arrow Lake chips use the NPU 3 design, which originally came out back in 2023. Reports suggest that there were plans to bump Arrow Lake up to the NPU 4 that shows up in Lunar Lake chips, but apparently, that will not happen after all. NPU 3 can only offer 11.5 trillions of operations per second (TOPS), while NPU 4 offers 48 TOPS. Given that Copilot+ requires 40 TOPS, it seems that Arrow Lake will fall short of the hoped-for capability. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 30.87% loss in its share price over the past year, the average INTC price target of $21.60 per share implies 6.76% downside risk.
Yahoo
3 days ago
- Business
- Yahoo
What You Need to Know Ahead of Intel's Earnings Release
Santa Clara, California-based Intel Corporation (INTC) designs, develops, manufactures, markets, and sells computing and related products and services worldwide. With a market cap of $99 billion, the company operates through Intel Products, Intel Foundry, and All Other segments. INTC is poised to report its fiscal 2025 Q2 earnings on Thursday, July 24, after the market closes. Ahead of this event, analysts expect the company to report a loss of $0.14 per share, flat year-over-year from the year-ago quarter. The company has surpassed the Street's bottom-line projections in two of the past four quarters, while missing on two occasions. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2025, analysts expect INTC's loss to narrow 64.7% to $0.30, from a loss per share of $0.85 in fiscal 2024. Furthermore, its EPS is expected to grow 150% year over year to $0.15 in fiscal 2026. INTC stock has declined 33.8% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund's (XLK) 16.4% surge and the S&P 500 Index's ($SPX) 12.7% uptick during the same time frame. On Apr. 24, Intel stock grew 4.4% following the release of its Q1 results. The company's revenue came in at $12.7 billion, a slight decline from the year-ago quarter that surpassed Wall Street estimates. Moreover, INTC's adjusted loss per share for the quarter declined 27.8% year-over-year to $0.02 and surpassed the consensus estimates by 85.7%. Wall Street analysts are skeptical about INTC's stock, with a "Hold" rating overall. Among 38 analysts covering the stock, one suggests a 'Strong Buy,' 32 recommend a 'Hold,' and five recommend a 'Strong Sell.' While INTC currently trades above its mean price target of $22.68, the Street-high target of $62 indicates a potential upswing of 171.9% from the current market price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Intel Stock (NASDAQ:INTC) Continues Slide as it Abandons AI Training
Honestly, right now, it is hard to tell whether to give chip stock Intel (INTC) credit for a newfound focus or be terrified that it is on its way to producing virtually nothing. In fact, Intel recently called it quits in the artificial intelligence (AI) training market, a move which left shareholders shaken. Intel shares dropped nearly 2% in Wednesday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. In something of a bold move, Intel departed one market to focus instead on another: inference. Specifically, Intel is now set to focus on '…edge and agent-based' inference, a move which might actually be better for Intel in the long run. Reports suggest that the inference market may ultimately surpass the training market in terms of overall value. After the Gaudi 3 chip failed to make much impact on the market, Intel instead pulled back to edge AI, agentic AI, and foundry services. Edge AI refers to both 'local' systems that do not need data center or cloud data deployments and some remote systems not connected to larger operations. Agentic AI, meanwhile, focuses on chips that can act without much, if any, human intervention. 18A Process Remains Uncertain There were some signs, first seen not so long ago, that suggested Intel may be planning to shut down the 18A process. And new reports lend at least some credence to that theory, though not a complete admission of abandonment. The new reports suggest that Intel is likely to use the 18A process to fabricate the Panther Lake line of mobile processors. But the Nova Lake processors are instead being taped-out through the N2 process from Taiwan Semiconductor (TSM). Intel was already an 'early client' for the N2 process, and it seems like it may be putting that process to work before it can get the 14A process, which was to ultimately replace the 18A process, up and running. Given some reports that suggested 18A would be used internally, as opposed to being used for foundry customers, the new revelation about Nova Lake may provide some support for that notion. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 33.49% loss in its share price over the past year, the average INTC price target of $21.60 per share implies 4.21% downside risk.
