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Is the Intel stock too cheap to ignore ahead of earnings?


The Intel (NASDAQ: INTC) stock price is under pressure ahead of the upcoming quarterly earnings. The stock is trading at $52, which is a few points below last week’s high of $56.35. It is also about 22.25% below its highest level in 2021.

Intel earnings preview

Intel has been in the headlines in the past few days. Last week, the company announced that it will invest $20 billion in Ohio, where it will start manufacturing chips. The new plant is expected to create over 3,000 jobs in the region.

The announcement came at a time when the American government is accelerating its strategy to become independent in critical products like semiconductors. Today, most chips are manufactured in Taiwan, a city that China is claiming. 

Therefore, by building chips in the US, the country will be at a good place to remain self-sufficient and reduce its over-reliance on China. 

However, for Intel, doubling down on the foundry business is a complicated situation. For one, the main reason why AMD and Nvidia have done well is that they don’t manufacture their products. Instead, they use Taiwan Semiconductor and GlobalFoundries.

The next key catalyst for the Intel stock price will be its quarterly earnings that will come out on Wednesday. Analysts tracking the company expect that its revenue for the fourth quarter was over $18.36 billion. This revenue will be slightly higher than the third-quarter revenue of over $18.03 billion.

At the same time, analysts expect that its earnings per share will be $0.91, which will be lower than the previous $1.10.

In the upcoming earnings, analysts will be focusing on a number of things such as the performance of its data center business. Also, investors will want to know more about the company’s recent investment in the US.

Intel stock price forecast

The daily chart shows that the Intel stock price has declined sharply in the past few days. As a result, the shares have tested the upper side of the descending channel that is shown in black. It has also moved slightly above the 61.8% Fibonacci retracement level.

The stock has also moved to the same level as the 25-day and 200-day moving average. A closer look shows that it has formed a break and retest pattern. 

Therefore, there is a likelihood that the Intel stock price will bounce back in the near term. If this happens, the next key level to watch will be $60.

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