Intel Corp Stock. The chips are down as no end in sight for semiconductor shortage.

Summary:

Shares in the U.S listed Intel Corporation (INTC) gapped lower on Friday's opening as its Q1 earnings underwhelmed investors.

Shares in the U.S listed Intel Corporation (INTC) gapped lower on Friday’s opening as its Q1 earnings underwhelmed investors.

Both Earnings Per Share (EPS) and revenues beat consensus analysts’ expectations. However, the forward guidance painted a less than rosy outlook for the coming quarter.

Q1 EPS came in at $1.39 vs $1.13, with revenues of $19.67 Billion, beating the street expectations of $17.86 Billion.

Intel Corp’s CEO Pat Gelsinger expressed concerns that the global semiconductor shortage may extend a further two years. This is likely to have an impact on Intel Corps profitability in the second quarter.

Intel Corp stock opened at $59.16 per share, some $3.41 lower than the previous session close of $62.57. Trading volume was noticeably high with more than 77 million shares changing hands, in excess of double the average 3m figure of 31.7 Million.

The market traded to a low of $57.90. Briefly touching the 100-day Moving average at $58.00. Before recovering into the close. the stock finished the day 3.33% lower at $59.24.

Intel Stock forecast

For the past year, Intel Corp stock has traded in a wide sideways band between $44.00 and $69.0. The higher end of the channel seen as recently as April 13th.

Given the current pessimistic view for the chipmaker, I expect a retest of the 100-day moving average in the coming sessions. How the price reacts at this important technical level will set the tone for the next big price movement. Should the average be breached, we look to the 19th October highs at $56.23 as the next level of interest.

If the price can hold the 100-day and consolidate, bulls would look to close the gap from Friday’s opening. With an initial target of Thursdays closing price at $62.57.