Intel Share Price Forecast March 2022 – Time to Buy INTC?
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Shares of microprocessor company Intel (NASDAQ: INTC) are in the red today, after closing at $47.39 as of March 21st (19:51 EDT). Intel shares have experienced dos and price target cuts in recent months. Most notably, Morgan Stanley downgraded Intel to underweight and cut the price target to $47. At its 2022 investor meeting, the company revealed that it’s focusing on continued innovation of data centre products and the accelerated movement into the foundry business which can drive strong returns to investors.
Intel – Technical Analysis
Intel’s financial statement indicates a market cap of $192.972 billion with total assets worth $168.406 billion. Revenue for 2021 was at $79.02 billion with a profit margin of 25.14% compared to $77.87 billion in 2020.
Oscillators such as Relative Strength Index (14)(50.06), Stochastic %K (14, 3, 3)(66.19), Commodity Channel Index (20)(48.22), Average Directional Index (14)(18.34) and Awesome Oscillator(−1.03) are neutral. Moving averages such as Exponential Moving Average (10)(46.80), Simple Moving Average (10)(46.54), Exponential Moving Average (20)(47.07) and Simple Moving Average (20)(46.81) are indicating a buy action.
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Recent Developments
Currently, both Intel and AMD are market leaders in the semiconductor sector. Both of the companies have roughly the same market cap. Intel announced its intention to invest more than $20 billion two build new factories in Ohio back in January. It has also allocated $100 million towards educational institutions and partnerships. It has also announced plans to invest almost €80 billion over the next decade in Europe. The company plans to spend $36 billion to develop a network of chipmaking plants.
Intel has also announced plans to invest in the whole chip ecosystem. This includes R&D, design, packaging, manufacturing and foundry services. In phase 1 of the investment, Intel will invest €17 billion in Germany and €12 billion in Ireland and develop a design hub in France. The second phase will include more than €30 billion in Ireland.
While the entire world needs semiconductors, 80% of them are produced in South Korea or Taiwan, which has been causing supply chain issues. The EU Chips Act is slated to attract €43 billion of public investment. This initiative aims to make Europe the leader in chip production, providing it with the capacity to produce 20% of the world’s microchips by 2030.
Intel has also entered into a definitive agreement to acquire Tower Semiconductor, which is a leading foundry for analogue semiconductor solutions. The all-cash deal at $54 per share will be funded by Intel’s balance sheet and will be completed in 12 months. This deal will allow Intel to gain seven foundries globally — two in Israel, two in the USA, and three in Japan.
Should You Buy INTC Shares?
Investors have multiple reasons to go for Intel shares as they are cheap in an otherwise expensive market. While it’s true that Intel has lost ground to competing chip makers such as Nvidia (NVDA) and Advanced Micro Devices (AMD), both the company shares are expensive.
At its recent price, Intel shares are an attractive opportunity for long-term investors. The declined share price is mainly due to deep scepticism surrounding Intel’s turnaround plan as well as concerns about near-term margin pressure. While the company has been criticised in recent years for underinvesting in emerging technologies, it is now starting to invest heavily in research and development. Considering this now is a good time to buy Intel shares.
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