- Summary:
- Intel share price rose strongly on a day that the tech-heavy Nasdaq index snapped a five-month winning streak. But will it last?
Intel share price rose sharply in pre-market trading on Friday, going up by 5.9 percent to trade at $22.79 as investors reacted to its earnings call. The company reported forecast-beating revenues, but its EPS fell short of expectations. However, its guidance for the next quarter was upbeat, and earnings from its data centre also impressed. Its stock price rose by as much as 12 percent in afterhours trading on a day that the tech-heavy Nasdaq index recorded its first monthly decline after five months on the rise.
During the third quarter, Intel (NASDAQ: INTC) reported a loss of $0.46 per share, significantly more than the median forecast loss of $0.03 per share. However, that was offset by a revenue of $13.28 billion, which exceeded analysts’ forecast of $13 billion. In addition, the company’s earnings from data centre and AI divisions came in at $3.35 billion, beating the consensus forecast figure of $3.1 billion.
Furthermore, Intel reported that it expects to earn $13.3 billion -$14.3 billion in Q4, which is above analysts’ forecast figure of $13.63 billion. That signals that the company could be on a recovery path after a tumultuous year in which it fell further back behind peers like Nvidia, Broadcom and AMD in the AI race, and had to send home 15 percent of its workforce.
The company is counting on its newly-released Arrow Lake processors to close the gap with its peers, but it could take more effort to achieve that. However, weak sales in the first week of release could weigh down on the stock price in the coming weeks. Also, while it has recently signed deals with big tech companies including Amazon and Microsoft, its orderbook still trails that of its peers. Unless it attracts more institutional buyers, that could exert pressure on the share price in the coming months.
Intel share price forecast
The momentum on Intel Corporation stock price favours the buyers to dictate the market. The price will likely pivot at 22.70, from where the first resistance is likely to come at 22.90. A stronger upside will break above that barrier, and could push the price to test 23.15.
On the other hand, moving below 22.70 will favour the downward momentum to prevail. In that case, the first support is likely to come at 22.53. However, if the downward momentum strengthens, it could break below that mark, invalidate the upside narrative and potentially test the second support at 22.30.
