With the semiconductor industry taking markets up in the storm, it is easy to overlook players that are not Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). However, their competitor, Intel (NASDAQ: INTC), isn’t far behind in company performance.
Intel surpassed expectations in its latest earnings report, beating the EPS estimate of $0.27 with actual EPS of $0.54 and estimated revenue of $15.16 billion by $240 million. Yet its guidance fell significantly short of expectations. Investors reacted by selling off the stock, perceiving the microchip producer’s ambitions as lacking compared to its rivals.
At the final bell on February 7, INTC closed at $42.78, marking a 0.094% increase. However, this minor gain contrasts with a -1.04% decrease observed over the previous five trading sessions, highlighting the stock’s volatility.
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INTC is currently trading around the midpoint of its 52-week range while the S&P 500 Index approaches new highs, suggesting INTC is lagging behind the broader market.
A support zone at $42.59 has emerged, identified by the convergence of trend lines across multiple time frames.
Additionally, a resistance zone ranging from $42.79 to $43.94 has been observed.
Wall Street forecast for INTC stock
The current performance and legal troubles have deterred analysts from TipRanks from leaning either way, as they granted this stock a ‘hold’ rating. With a price target set at $46.42, indicating an 8.51% upside from the current level.
Of 35 analysts, 7 advised ‘buy,’ 24 went for ‘hold,’ and 4 picked ‘sell.’
Analysts from TradingView agree with the ‘neutral’ rating based on 43 evaluations. Among these, 7 recommended a ‘strong buy,’ 1 advised ‘buy,’ 28 suggested ‘hold,’ 2 proposed ‘sell,’ and 5 opted for ‘strong sell.’
The price target is $45.09, with an upside of 5.40% from the current price.
Legal troubles could trample future growth
Intel has faced a significant legal setback in a patent lawsuit, resulting in severe consequences. As a result, Intel is now prohibited from selling specific processors in Germany due to alleged patent infringement by R2 Semiconductor.
A minor silver lining: The sales restriction imposed by the Düsseldorf Regional Court excludes all brand-new processors.
The Düsseldorf regional court sided with California-based R2 Semiconductor concerning voltage regulators.
All in all, the broader market, analysts, and the stock seem to wait for the braver, more optimistic guidance from the Intel leadership. According to market analysts, Intel’s future performance could benefit from strategic initiatives aimed at addressing current challenges.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
