Following the earnings report release, which nearly doubled Wall Street's expectations, Intel stock (INTC) experienced a significant increase of 9.7% in a single day. Despite declining laptop sales in the first half of 2023, this upturn in the legacy semiconductor company coincides with the PC market exhibiting signs of a revival.
JPMorgan analyst Harlan Sur expressed confidence in Intel's performance in a client note, citing the team's sound execution and gradual improvements in computing fundamentals. Additionally, he noted that the upcoming year will present Intel with significant challenges, as the company plans to release three data center products and one key client product across three new manufacturing technology nodes.
Following the latest development, HSBC also increased its price target for INTC from $27 to $33.
Intel Corp (INTC) Earnings Report Review
Wall Street anticipated that Intel, under the leadership of CEO Pat Gelsinger, would disclose adjusted earnings of $0.22 per share for the third quarter. However, Intel's $0.41 per share earnings exceeded these estimates. In addition, the company's revenue exceeded consensus estimates, totaling $14.16 billion, or approximately $560 million more than expected.
Following the earnings report, Mizuho Securities predicted a 3% increase in PC sales for 2024, following a decline of approximately 10% this year.
Pat Gelsinger, the chief executive officer of Intel, indicated optimism regarding the company's transformation strategy, known as "IDM 2.0," and emphasized the company's relentless progress.
Gelsinger and his colleagues anticipate fourth-quarter sales between $14.6 billion and $15.6 billion, exceeding the prior consensus estimate of $14.35 billion.
Intel Stock (INTC) Technical Analysis
Intel stock (INTC) dropped with impulsive pressure last Friday but rebounded immediately after this week’s market opening. Moreover, the price found a bottom at the static channel support, from where a bullish recovery came above the 20-day EMA.
Based on the Intel Stock (INTC) daily chart, the upward pressure could extend as long as bulls hold the price above the dynamic 20-day EMA. In that case, the upward pressure could extend toward the 40.06 resistance level.
On the other hand, a deeper discount with a bearish daily candle below the 32.13 double-bottom support could be a short opportunity, targeting the 24.69 low.
