Can Intel Stock Price Grow Another 10% in February?

Can Intel Stock Price Grow Another 10% in February?
  • Intel reports higher-than-expected fourth-quarter earnings
  • Earnings $1.52 per share vs. $1.25 per share as expected by analysts
  • Revenue exceeded the $20 billion mark

Intel (ITC) stock price gained nearly 15% this week after the tech giant reported better-than-expected fourth-quarter earnings on all fronts. As a result, shares of Intel printed a fresh 20-year high. 

Fundamental analysis: Intel’s Client Computing Group impresses

Intel reported earnings of $1.52 per share compared to $1.25 per share, while revenue also eclipsed analysts’ estimates of $19.23 billion, as it came in at $20.21 billion.

“In 2019, we gained share in an expanded addressable market that demands more performance to process, move and store data. One year into our long-term financial plan, we have outperformed our revenue and EPS expectations. Looking ahead, we are investing to win the technology inflections of the future, play a bigger role in the success of our customers and increase shareholder returns,” said Bob Swan, Intel’s CEO.

The company’s largest operating segment, the Client Computing Group, posted $10.01 billion in revenue, exceeding the $9.74 billion market consensus.

“We think that Intel’s PC chip shortages likely resulted in some PC business being pushed from the December quarter into the March-2020 quarter, which we think could cause Intel’s CCG revenue in the March quarter to be higher than usual, despite a sequential seasonal step down,” said Nomura Instinet analysts, who have a “buy” rating on Intel stock. 

Moreover, CEO Swan also said the company expected a growth of 18% next year, which again, beat market expectations. 

“We are also planning for an increasingly competitive environment as we move through the year,” said George Davis, Intel’s finance chief.

Technical analysis: Highest levels since 2000

Intel stock price soared more than 8% on better-than-expected earnings to hit $69.29, which is around 15% better than $59.81 where the stock opened the week. The bulls are now approaching the key short-term resistance at $70.09. The absolute target for the bulls is $75.81, which is the all-time high for the Intel stock, set in August 2000.

Intel stock price weekly chart (TradingView)

On the downside, the broken ascending trend line that connected the previous swing hihgs (the red line) should offer a strong supporting base at $61 for the Intel stock. This area is also a great buying opportunity for investors who wish to buy the Intel stock. 

Summary

Intel stock price hit a 20-year high on the back of a great Q4 and 2019 results on all fronts. The stock price is now approaching the first target around the $70 mark, while the record high of $75.81, set in 2000, is the key target for 2020.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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