Intel stock soars 19% on blockbuster earnings; Is INTC a buy at $80?

In a particularly dramatic chapter of its months-long recovery, Intel (NASDAQ: INTC) stock soared 19.92% in the April 22 after-hours from the latest closing price of $66.78 to $80.10.

The INTC share price upsurge came as a reaction to the blockbuster results achieved during the first quarter (Q1) and published after the evening bell on Thursday. 

Indeed, the blue-chip chipmaker revealed a series of impressive financial results, including a 7.2% increase in revenue from the $12.67 billion recorded a year earlier. Furthermore, Intel beat the analyst forecast – which set its expectations at $12.42 billion – and recorded $13.58 billion.

Earnings per share (EPS) were even more impressive, considering they came in at $0.29 while $0.01 was anticipated.

Is Intel stock a ‘Buy’ above $80?

At press time on April 23, it appears that Intel stock remains a ‘Buy’ despite rapidly turning substantially more expensive literally overnight. 

In the short term, attempting to time the purchase would not be entirely futile since the pre-market is likely to bring a correction, but, in the long-term, INTC shares are poised to climb substantially higher than $80 should the strong Q1 performance persist through Q2.

One possible area of concern, however, exists in Intel’s guidance. The semiconductor giant estimates that its second-quarter revenue will come in at between $13.8 billion and $14.8 billion, demonstrating confidence in continued growth, but the expectation of EPS at $0.20 – $0.09 lower than in Q1 – could end up unnerving investors.

Another possible reason for traders to hold off on purchasing INTC shares in the immediate aftermath of the earnings and remain – in line with the Wall Street overall rating of the equity – ‘Neutral’ is that Intel stock’s 52-week regular-session high stands at $70.32.

While the company is, at press time, trading significantly above the psychological resistance, the upsurge was achieved during hours with lower volume, and there is a risk INTC will fail to hold $80 even though it is likely it will enjoy multiple green sessions through the rest of April at least.

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