The Price of Intel (INTC) Shares Rose By 9.5% in a Day
The Price of Intel (INTC) Shares Rose By 9.5% in a Day
The reason for the optimism is a report from Reuters that CEO Pat Gelsinger is planning to present a comprehensive plan to the board of directors in mid-September:
→ Special attention will be given to reducing capital expenditures, which is part of a broader effort to revitalise the chipmaker, whose shares have experienced a dramatic decline. It’s worth noting that on 2 August, the price of Intel (INTC) shares dropped by 26% in a single day following the release of disappointing quarterly results and projections, which greatly disheartened investors.
→ The plan also considers the sale of businesses, including the Altera division. Reportedly, Intel has enlisted Morgan Stanley and Goldman Sachs to advise on the sale of these assets.
→ Additionally, Intel aims to reduce its workforce by more than 15%, with the majority of the cuts expected to be completed by the end of 2024.
Investors were encouraged by the news that the management is ready to take decisive action. As Gelsinger recently stated, "We respect the scepticism we’ve received from the market. We believe we’re ready to meet the challenge."
Technical analysis of the INTC stock chart indicates that:
→ Since 2021, the price has been in a downtrend, indicated by the descending channel on the chart. The lower boundary of the channel acted as resistance, halting the price decline in August.
→ The W-shaped formation that has developed over the past month is a type of bullish double-bottom pattern, which is reinforced by the psychological level of $20.
→ Yesterday’s trading opened with a bullish gap, and during the session, the price rose above the highs set after 2 August.
Thus, the price action suggests that market participants are hopeful that Intel will overcome its challenges. It is possible that, in light of the news related to the comprehensive plan to improve the company’s efficiency, the price could reach the $25 level.
According to the average estimates of analysts surveyed by TipRanks, the target price for INTC is $27.32 over the next 12 months. Only 1 out of 32 analysts recommends buying INTC shares.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The reason for the optimism is a report from Reuters that CEO Pat Gelsinger is planning to present a comprehensive plan to the board of directors in mid-September:
→ Special attention will be given to reducing capital expenditures, which is part of a broader effort to revitalise the chipmaker, whose shares have experienced a dramatic decline. It’s worth noting that on 2 August, the price of Intel (INTC) shares dropped by 26% in a single day following the release of disappointing quarterly results and projections, which greatly disheartened investors.
→ The plan also considers the sale of businesses, including the Altera division. Reportedly, Intel has enlisted Morgan Stanley and Goldman Sachs to advise on the sale of these assets.
→ Additionally, Intel aims to reduce its workforce by more than 15%, with the majority of the cuts expected to be completed by the end of 2024.
Investors were encouraged by the news that the management is ready to take decisive action. As Gelsinger recently stated, "We respect the scepticism we’ve received from the market. We believe we’re ready to meet the challenge."
Technical analysis of the INTC stock chart indicates that:
→ Since 2021, the price has been in a downtrend, indicated by the descending channel on the chart. The lower boundary of the channel acted as resistance, halting the price decline in August.
→ The W-shaped formation that has developed over the past month is a type of bullish double-bottom pattern, which is reinforced by the psychological level of $20.
→ Yesterday’s trading opened with a bullish gap, and during the session, the price rose above the highs set after 2 August.
Thus, the price action suggests that market participants are hopeful that Intel will overcome its challenges. It is possible that, in light of the news related to the comprehensive plan to improve the company’s efficiency, the price could reach the $25 level.
According to the average estimates of analysts surveyed by TipRanks, the target price for INTC is $27.32 over the next 12 months. Only 1 out of 32 analysts recommends buying INTC shares.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.