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.
INTC sees MACD Histogram crosses below signal line
INTC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 01, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on INTC as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
INTC moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for INTC crossed bearishly below the 50-day moving average on July 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 309 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.
The Aroon Indicator entered an Uptrend today. In of 173 cases where INTC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 69, 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 (4.647) is normal, around the industry mean (16.983). INTC has a moderately high P/E Ratio (904.167) as compared to the industry average of (235.360). Projected Growth (PEG Ratio) (1.359) is also within normal values, averaging (1.821). Dividend Yield (0.004) settles around the average of (0.015) among similar stocks. P/S Ratio (9.033) is also within normal values, averaging (47.494).
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General Information
a manufacturer of computer components and related products
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