Intel (NASDAQ: INTC) is the world’s leading supplier of microprocessors for computer systems. It is best known for x86 architecture-based CPUs, launched in the 80s. Since then, the CPUs have been modified and modernized. The company also manufactures graphics chips, flash memory, and other devices in the computing and communications industries.
Intel Stock Performance
During early trading on December 4, 2023, the stock jumped by over 5.6% after it announced the launch of CPUs designed to run AI on a PC. However, by the end of trading, it had lost some gains and closed 1.37% higher at $45.18 per share.
The stock has had a great run in 2023 amidst the rise of AI and the growing demand for more processing power. It is up 69.02% year-to-date. In the past month, the stock’s value has risen 11.25%.
Intel Launches New AI Chip
On December 14, 2023, Intel announced the launch of a slew of new AI-focused products. Intel’s “AI Everywhere” processors will, amongst other things, make it possible to run robust AI processes on a local PC.
Commenting on the new product line, CEO Pat Gelsinger said that innovations in AI were poised to increase the impact of the digital economy by up to a third of global GDP. He added that the company was developing technologies and solutions enabling customers to seamlessly integrate and run AI locally on the PC in all applications.
The processors launch amidst rising competition from competitors Advanced Micro Devices Inc. (AMD) and Nvidia Corp. (NVDA) amidst the AI boom.
INTC Stock Forecast
At the current $45.18 per share, Intel stock is trading close to its 52-week high of $47.07. Its value is above its 50-day and 200-day moving averages of $39.42 and $34.22, respectively.
Intel released its Q3 earnings report in late October 2023. It exceeded EPS estimates by 87.04% for the quarter. However, its reported revenue of $14.16 billion was a 7.69% decline year-over-year, and its net income dropped 70.85% Y/Y. Despite revenue dropping Y/Y, the stock has continued to rise.
Analysts have given the stock a hold rating based on its financial numbers and current performance. They predict a high of $56 and a low of $17. Their average target for INTC stock is $38.11, a 15.65% decline based on the last price of $45.18.
Should You Buy Intel Stock?
The modest gains made by INTC in the last trading session signal investors’ approval of the company’s new generation of processors. There is an ongoing shortage of AI chips, and many companies in the sector have complained they cannot find enough. Intel is currently working to ramp up its chip production capacity, including taking on government subsidies to help it put up new facilities in Arizona and Europe.
In the last earnings report, the CEO said it had seen a rising demand for PCS. He also noted that Intel forecasts revenues to rise 4-11% year-over-year. As a long-term investment, holding some INTC stock could pay off. However, analysts’ hold rating accurately represents the stock’s price in the short term.
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