Intel (INTC, $47.93) shares fall on margin headwind, data center weakness and chip delay news
Shares of semiconductor company Intel were down more than -11% Friday morning. On Thursday, the company reported its third-quarter earnings that were in line with expectations; but it also revealed weakness in its data center business and reaffirmed the delay of its latest-generation chips.
Intel’s third quarter non-GAAP earnings came in at $1.11 per share on revenues of $18.3 billion.
However, data center and personal computer sales reflected cheaper semiconductors putting pressure on the group's gross margins, which were around 200 basis points below the company's prior guidance at 55%.
The company’s Data Center Group experienced a -7% decline in revenue in the quarter.
Looking ahead, Intel boosted its full-year non-GAAP earnings outlook to $4.90 per share, a 5 cents per share increase from its summer forecast. It projects fourth quarter revenues of around $17.4 billion.
"2020 has been the most challenging year in my career with a global pandemic geopolitical tensions challenging business principles of globalization and social unrest," CEO Bob Swan told investors. "Despite all this, we expect to deliver the best year in our storied 52-year history."
In July, Intel delayed its 7 nanometer processors until 2022 for computers and the following year for servers. The company could begin depending on other companies to manufacture its chips, but likely won’t be provide more information until January, according to CEO Bob Swan.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for INTC turns positive, indicating new upward trend
INTC saw its Momentum Indicator move above the 0 level on September 04, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 95 similar instances where the indicator turned positive. In of the 95 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for INTC just turned positive on September 03, 2026. Looking at past instances where INTC's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
INTC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INTC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for INTC entered a downward trend on August 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. INTC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.309) is normal, around the industry mean (7.279). INTC's P/E Ratio (904.167) is considerably higher than the industry average of (156.799). Projected Growth (PEG Ratio) (1.359) is also within normal values, averaging (1.628). Dividend Yield (0.004) settles around the average of (0.015) among similar stocks. P/S Ratio (8.985) is also within normal values, averaging (54.185).
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a manufacturer of computer components and related products
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