The Intel (INTC) stock price has jumped in the past five consecutive days as investors wait for the company’s quarterly results. The shares are trading at $55.37, which is about 6.5% above the lowest level this month. They are about 18% below the highest level this year.
Intel earnings preview
Intel is one of the biggest semiconductor companies in the world. For decades, the company has provided chips that power all types of computers and data centers globally. Some of its customers are firms like HP and Dell.
Intel, however, has lost its shine recently as competition with companies like Advanced Micro Devices (AMD) and Nvidia (NVDA) has jumped. Indeed, Nvidia has overtaken Intel in terms of market capitalization.
Intel has also suffered as more companies have moved to build their own chips. Apple has already launched its computers with the M1 chip. Similarly, Amazon is also building its own chips for its data centers. More companies are expected to start designing their chips in a bid to boost their competitive advantage.
At the same time, the semiconductor industry is going through significant shortages this year. And, according to Michael Dell, the shortage will likely last for at least two years.
It is against this backdrop that Intel will publish its result on Thursday. Data compiled by SeekingAlpha shows that analysts expect the company’s revenue to drop to more than $18.27 billion in the third quarter.
This will be a small decline from the $18.33 billion that it recorded in the same quarter in 2020. It will also be lower than the $18.53 billion that the firm recorded in the second quarter. Analysts also expect that the company’s profit will decline to $1.06 per share in the third quarter. There is a likelihood that the company’s revenue will beat estimates since it has done so in the past ten straight quarters.
What to watch
In addition to the headline revenue and profit numbers, investors will watch out for key things when Intel publishes its results.
First, they will look at the company’s guidance, and the overall outlook as the chip shortage continues. In the second quarter release, the company issued soft guidance even as it boosted its outlook. It expects to make revenue of more than $73.5 billion this year. An upgrade of this view will be positive for the Intel stock price.
Second, analysts will listen for an update about the state of the semiconductor industry. Most importantly, investors will focus on an update about the company’s 7nm chips. Also, they will look at the progress of its PC business. This is because the PC segment is expected to show some weakness now that more people are going back to the office. Finally, the market will wait for an update on its data center earnings.
Intel stock price forecast
In general, most analysts are optimistic about the Intel stock price. For example, data compiled by Tipranks show that the average estimate by analysts is for the stock to rise to $60. Similarly, data by Yahoo Finance shows that analysts are bullish on the stock.
On the daily chart, the stock found major support at around $51.92. It struggled to move below this level several times this year. The stock has now moved above the 25-day and 50-day moving averages, while the MACD has moved above the neutral level. The pair is close to a bullish breakout. Therefore, there is a likelihood that the shares will have a bullish breakout soon.
