Intel Corporation (INTC:NASDAQ)
Price at Preparation: $33.99 (July 8th, 2024)
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What they do
Intel Corporation (INTC:NASDAQ) engages in the design, manufacture, and sale of computer products and technologies. Delivering computer, networking, data storage, and communications platforms. Intel operates through the following segments:
- Client Computing Group (CCG): Consisting of platforms designed for notebooks, 2-in-1 systems, desktops, tablets, phones, wireless and wired connectivity products, and mobile communication components.
- Data Center Group (DCG): Workload-optimized platforms and related products designed for enterprise, cloud, and communication infrastructure market.
- Internet of Things Group (IOTG): Compute solutions for targeted verticals and embedded applications for market segments including retail, manufacturing, health care, energy, automotive, and government.
- Non-Volatile Memory Solutions Group (NSG): NAND flash memory products primarily used in solid-state drives.
- Programmable Solutions (PSG): Programmable semiconductors and related products for a broad range of markets, including communications, data center, industrial, military, and automotive.
- Other: Consists of results from other non-reportable segments and corporate-related work.
Welcome to Theta Bandits Top Pick Tuesday. We strive to bring you relevant free content, scouring the markets and making plans to get ahead of what we think could be new potential winners in any portfolio.
Opinion
Intel Corporation (INTC:NASDAQ) is the focus this week. We realize there might be questions about this pick as it has been underperforming the sector in comparison to some of it’s peers as shown in the diagram. While this underperformance is true and recently testing 52-week lows at $29.73 USD while NVDA is making new highs, this offers leverage in stock price for a recovery that we can take advantage of. While INTC fights this likes of NVDA and AMD on the chip side, they also fight TSM as a foundry as INTC not only design their microprocessors but build them. The new factories have been a source of headwinds for them in the past. Reading the above “what they do” section shows this is a deep company with many facets.
The chart below shows the street consensus with 14 Buys, 30 Holds, 4 Sells and the 12-month Price Targets (PT) as follows:
- Low: $17.00 USD (-49.99%)
- Average: $39.73 USD (+16.89%)
- High: $100.00 USD (+194.2%)
With INTC stock, there is an additional incentive of a 1.56% dividend, paid quarterly and helps lower the cost basis of the stock working the recovery.
Plan
As usual, in the visual aid below the following colors are used:
- Blue: 52-week high.
- Red: 52-week low.
- Green: 12-month PTs (avg).
- Orange: Support/resistance lines, gap information.
- Yellow: Our potential plan targets.
Finding the trading opportunity is key for us, looking at the PTs from the analysts the gap is just too big to make sense. Looking at the technical on the chart we can see in the last few days the stock price has started to move up nicely and almost completed the first gap shown circled in orange. That makes the next resistance line at $34.30 USD really important, if the stock can break through this resistance level it can potentially move up to our target zones. Our targets have been constructed to take us in the trade from the current level to the start of the next gap where there could be a strong resistance point. Aiming for these profit targets of $37.12 USD, $38.84 USD and $40.92 USD is a little above the 12-month PT of $39.73 USD.
As always, mitigating risk is wise and always secure profit and set/adjust stop-losses along the way. Closing the trade at the end target set out, this would be an approximate 20% trade. Any further price action, while possible should only be taken with profits.
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RISKS
The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.
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Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.
