Intel Corp. (INTC Stock) is hoping to see its golden days again, as it is investing heavily in manufacturing units worldwide. Intel has plans to spend $4.6 billion in Poland on a semiconductor assembly and testing facility. The company also invested around $25 billion in Israel on a microchip factory, and $33 billion in Germany over two chip-making plants. The company is going back to basics to move forward.
Intel Corp. (INTL Stock) – Financial Analysis
Multiple institutional investors and hedge funds have adjusted their positions at Intel Corp. Frontier Wealth Management, LLC increased its stake by 0.5% in Q1 2023 and they now own 46,894 shares worth $2.18 million. West Michigan Advisor, LLC hiked stakes by 5.4% in Q1 and now owns 5,134 shares worth $255k. CF04Life Group, LLC swelled its position by 2.3% and held 15,770 shares worth $515k.
The recent boom in AI stocks in the U.S. caused the market cap of Nvidia to hit $1 trillion. However, the recent rally experienced by the semiconductor stocks could reverse as the Biden Administration is considering banning AI chip sales to China. As China is among the biggest importers, the decision could hamper the chip-making business in the U.S.
At press time, INTC stock is trading at $33.57 with a drop of 1.55%; previous close and open were at $34.10 and $33.61, respectively. The 52-week change comes with a decline of 10.26%, and the trailing twelve-month (ttm) earnings per share (EPS) is reported to be minus $0.70.
With an average volume of 45.94 million shares, the market cap of Intel Corp stands at $140.02 billion. Quarterly EPS dropped by 104.60% to negative $0.04. Experts estimate that the chip-maker will also post negative EPS for the current quarter. Analysts placed a 1.94 rating for Reduce, foreshadowing a drop, and estimated a price target of $30.65 with an 8.7% downside.
The last earnings were reported on April 27, 2023, when the reported revenue of $11.715 billion surpassed the estimated $11.013 billion by 6.37%. Revenue in the recent quarter dropped by 36.17% to $11.72 billion, and the revenue (ttm) is reported to be $56.42 billion—the quarterly revenue growth, year-over-year (YoY), has suffered by 36.20%.
Operating expenses were corrected by 11.48% to $5.41 Billion, and the operating margin fell by 3.90%. Net income tumbled by 133.99% to minus $2.76 billion, and the net profit margin suffered by 153.25% to negative 23.54. The profit margin dropped by 5.06%, and the gross profit (ttm) is reported to be $26.87 billion.
Total cash in hand at the end of the most recent quarter (mrq) is $27.53 billion, and the total debt in a similar time frame is $50.27 billion.
Intel Corp. (INTC Stock) – Candle Exploration
Currently, the INTC share price is slightly above the nearly flat EMA, and the RSI value of 55.33 indicates that there is some strength in the market. As long as the price stays above the EMA, the chances of the rally are strong, but it might consolidate in a range for a while. The price action might try to cross R1 and enter R2, but it must sustain its value to stay above the rest.
If the price slides below and enters the demand zone, it should bounce off, but if the southbound trek continues, a considerable drop can be expected. However, considering all the investments made by the company to boost production, things might take a positive turn.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/29/intel-corp-intc-stock-going-back-to-basics-to-move-ahead/