Intel Corporation’s stock has not been favored by Wall Street analysts, with most giving it a “Hold” rating. However, one journalist has been bullish on the stock, highlighting the potential for growth in earnings per share and citing catalysts like the Biden administration’s grant.
The journalist believes that Intel’s foundry business is a key aspect that deserves attention. Despite recent setbacks in the foundry business, such as larger-than-expected losses, the journalist remains optimistic about its long-term potential. They argue that Intel Foundry could see margin expansion and attract external customers, leading to significant revenue growth by 2030.
Furthermore, the journalist points out that while Intel may lag behind competitors like Taiwan Semiconductor in manufacturing technology, there is still solid demand for its capabilities. They reference a report projecting steady growth in the semiconductor foundry market driven by various sectors such as consumer electronics and automotive.
In terms of recent trading patterns, the journalist sees signals indicating a potential uptrend in Intel’s stock price. They note the break above the 20-day moving average, increased trading volume, and a rising relative strength index as bullish signs.
However, the journalist also acknowledges downside risks for Intel, including execution challenges in the foundry business, global trade tensions, and competition in the AI space. They caution that Intel is a high-risk investment and may not be suitable for conservative investors. Nonetheless, they believe that Intel has the financial resources and technical expertise to overcome short-term setbacks and provide long-term value for investors.
Article Source
https://seekingalpha.com/article/4703178-intel-stock-why-i-keep-betting-against-wall-street-technical-analysis
