To The Moon

$Intel(INTC)$ will be releasing their earnings report on 07/27/2023 after market close.

This week, investors will focus on the Federal Reserve meeting and earnings from tech giants. But it will be worth looking whether investors would shift from Nvidia and AMD to look at Intel.

Intel has shown signs of recovery, with its stock up nearly 30% year to date. But compared to the rise for Nvidia, Intel is still far behind.

Intel’s new chip for quantum computing, the restructuring of its AI roadmap, and a planned semiconductor plant in Poland have all contributed to this rebound.

Under the CEO’s leadership, Intel is making strategic moves to regain its footing in the semiconductor market. Intel is ramping up its manufacturing capabilities, focusing on AI and GPU technologies, and exploring collaborations with other industry players.

In this article, I am looking at the fundamental data for Intel and technical analysis to give us an idea on how Intel would be trading before its earnings and after its earnings.

I would be looking at how these positive initiative plus Intel’s recent positive test chip results and potential collaboration with Nvidia would provide us, as investors confidence that Intel is ready for a turnaround.

Intel (INTC) Earnings Data

Market is expecting Intel to report a 20.8% decrease in revenue to $12.132 billion from $15.32 billion a year ago.

This would mean that Intel expenditure in the report would be something I would look at.

Understand they have plans to build new facility, this would also impact their free cash flow.

Intel (INTC) Earnings History

If Intel EPS is better than forecast, I would foresee a strong rebound from its current traded price.

I would monitor and take note of how it will be trading 27 Jul premarket, this should give us an idea whether investors interest and confidence in this stock did not fade away.

Intel (INTC) Year-To-Date Earnings

Intel has a more than 20% growth year-to-date. I personally would see potential in Intel for the long term.

The demand for AI chips will change as the development getting mature. FPAGs chip would be the next phase to have AI enabled.

Intel (INTC) Financial Overview

I would think Intel revenue would reduce as the demand for their chips have not been picking up yet.

With their investment in new facilities, this would take time to boost the supply and demand. Their free cash flow will also be affected as more capital investment would be needed.

Intel (INTC) Sentiment Analysis

Investors sentiment have been negative as the recent AI evolution demand does not seem to see Intel taking advantage of it.

In the earnings call, I would be looking for more guidance and plan from their management on how they would navigate the AI evolution demand.

Technical Analysis – Simple Moving Averages (SMA)

Intel have been on bull trend but it is rather weak. But something to take note is Intel could have tendency to go into the bear.

If the earnings report have not been positive and if market does not really look forward to any guidance provided.

Technical Analysis – Relative Strength Index (RSI)

RSI momentum seem to be good, hope to see some buying.

But it will very much depends on how the earnings report turned out.

Technical Analysis – Average Directional Index (ADX)

ADX value is below 20, this indicate a weak trend.

+DI is very close to -DI suggest that it could be having a bearish downwards move. I will monitor closely on the price and volume movement.

Technical Analysis – Parabolic SAR (SAR)

Intel did go through a bullish reversal in mid July but it is worth to monitor how the price would be trading after its earnings report.

I will be looking for more news and plans on how Intel planned to navigate the semiconductor competitive environment.

Summary

Market is expecting Intel to post a negative EPS, this might be expected as Intel have not been able to grow despite A.I. revolution demand for chips.

I would think it is safer to monitor how the stock would be trading on 27 Jul premarket and before its earnings release after hours.

Appreciate if you could share your thoughts in the comment section whether you think Intel would post a better than estimate earnings?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.