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 in upward trend: price may jump up because it broke its lower Bollinger Band on May 25, 2023
INTC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 38 cases where INTC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where INTC's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where INTC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on INTC as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for INTC moved above the 200-day moving average on May 04, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INTC advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
INTC moved below its 50-day moving average on May 11, 2023 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 May 17, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 .
The Aroon Indicator for INTC entered a downward trend on May 30, 2023. 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (1.276) is normal, around the industry mean (7.030). P/E Ratio (16.010) is within average values for comparable stocks, (54.473). INTC's Projected Growth (PEG Ratio) (9.254) is very high in comparison to the industry average of (2.572). Dividend Yield (0.041) settles around the average of (0.024) among similar stocks. P/S Ratio (2.198) is also within normal values, averaging (11.588).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. INTC’s price grows at a lower rate over the last 12 months as compared to 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. INTC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of computer components and related products
Industry Semiconductors
INTC and
Correlation & Price change
A.I.dvisor indicates that over the last year, INTC has been closely correlated with TXN. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if INTC jumps, then TXN could also see price increases.
| Ticker / NAME | Correlation To INTC | 1D Price Change % | ||
|---|---|---|---|---|
| INTC | 100% | +3.41% | ||
| TXN - INTC | 77% Closely correlated | +0.15% | ||
| SWKS - INTC | 71% Closely correlated | -0.08% | ||
| MCHP - INTC | 69% Closely correlated | -1.88% | ||
| AMAT - INTC | 69% Closely correlated | +0.37% | ||
| QCOM - INTC | 68% Closely correlated | +5.12% | ||
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