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Analyst: Short Squeeze in Intel Stock Imminent as INTC Shares Rise

Analyst: Short Squeeze in Intel Stock Imminent as INTC Shares Rise


Intel’s shares have seen a 10% increase over the past five trading days, attributed to short covering by Mizuho analysts. The firm stated that hedge funds with long positions in AI semiconductors may be reducing exposure and rotating into non-semiconductor long positions, leading to the selling of short positions in companies like NVDA, AVGO, and MU, and covering short positions in Intel and Advanced Micro Devices. Mizuho also mentioned that some investors are optimistic that the Semicon West conference on July 9-11 could further boost Intel’s stock.

Even though Intel’s shares have fallen by more than 25% this year, the company’s stock recovered after initially dropping 15% following its April 25 results. Intel had forecasted first-quarter revenue of $12.2 billion to $13.2 billion, but actual revenue came in at $12.7 billion. Mizuho expressed skepticism about Intel’s prospects, citing a lack of exciting growth and a limited potential for a significant rally beyond $30 in the near future.

Intel has predicted second-quarter revenue of $12.5 billion to $13.5 billion, with earnings of $12.9 billion in the same quarter of 2023. The company’s average price target is $35.48, with a high of $62.81 and a low of $15.70, indicating possible price volatility in the coming months.

Eddie Pan, an expert in institutional investing and insider trading, does not hold any positions in the securities mentioned in the article. The opinions expressed are his own and comply with InvestorPlace.com’s Publishing Guidelines.

Overall, the rise in Intel’s shares can be attributed to short covering and anticipation for the Semicon West conference, despite concerns about the company’s lack of exciting growth prospects. Investors are advised to monitor the price volatility in the coming months as Intel navigates its financial performance and market dynamics.

Article Source
https://www.tradingview.com/news/investorplace:2c6ed95e3094b:0-intc-stock-pops-this-analyst-says-an-intel-short-squeeze-is-underway/

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