Intel Corporation Share Forecast January 2022 – Time to Buy INTC?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of Intel Corporation (NASDAQ: INTC) are in the red after closing at $48.05 as of January 27th (19:59 EST). Intel is focusing on regaining its lost market share. It will spend heavily in the coming years to expand its chip manufacturing capacity according to sources.
Intel Corporation – Technical Analysis
From the financial statement released by Intel Corporation, we see that the market cap of the company is at $195.419 billion with total assets worth $168.406 billion. Revenue for 2020 was at $79.02 billion with a profit margin of 25.14% compared to $77.87 billion the year before.
Moving averages such as Exponential Moving Average (10)(51.83), Simple Moving Average (10)(52.58), Exponential Moving Average (20)(52.35), Simple Moving Average (20)(53.18) and Exponential Moving Average (30)(52.28) are indicating a sell action. Oscillators such as Relative Strength Index (14)(31.49), Stochastic %K (14, 3, 3)(16.32), Commodity Channel Index (20)(−221.14), Average Directional Index (14)(25.36) and Awesome Oscillator(−1.22) are neutral.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Intel has been doing quite well over the past couple of months. Its new line of Alder Lake processors is reportedly doing well in independent benchmarks, giving tough competition to Advanced Micro Devices. Additionally, its Core i9-12900HK laptop processor outperforms AMD’s Ryzen Threadripper 1950X. The new processor line has allowed Intel to regain market shares from AMD. Additionally, Intel is focusing on launching its Raptor Lake chips in the second half of 2022.
Surging sales of Intel’s new processors have boosted the company’s market sales which could set the stage for Intel to start getting back at AMD. It has held a 60% share of the central processing unit (CPU) market in 2021 in each of the four quarters. It was a massive improvement compared to 2020 when the company finished with 61.5% of the CPU market.
Intel recently released its Q4 earnings report. It reported earnings of $1.09 per share which is a decrease of 26% year over year, beating its own guidance by $0.19. It recorded revenue of $19.5 billion. This represents a growth of 4% year over year (YOY) and beating estimates by $1.2 billion for this quarter. The company recorded a full-year revenue of $74.7 billion, growing 2% YOY and beating estimates by $1.2 billion. Management has set revenue guidance for Q1 at $18.3 billion, down 1% YOY, and gross margin 52%. The company raised dividends by 5%. The report also indicated that the CHIPS Act may affect the size of Intel’s new facility in Ohio.
Should You Buy INTC Shares?
After two years of rapid growth due to the pandemic, sales of personal computers (PCs) are expected to slow down in 2022. It is also expected to drop in 2023 as well, with growth expected to return only in 2024. The potential weakness in the PC market combined with the competition with AMD can be spoilt Intel’s turnaround.
The PC market will clock a compound annual growth rate of 3.3% through 2025. So investors should look past the potential near-term weakness of the PC market. Intel is on the road to redemption and the latest measures could act as a catalyst for the stock. The Intel shares are still great for investors looking for a cheap tech company. As it achieves more market share from rivals like AMD, Intel can drive growth in its biggest business sector which will help the share price. Considering this now is a good time to add Intel shares to your portfolio.
Buy INTC Stock at eToro from just $50 Now!
