“Gaps refill” is an old Wall Street saying. It is easy to understand why this occurs if trader and investor psychology are considered. It may be about to happen with shares of Intel Corporation INTC.One of the main reasons resistance forms in a market is buyer remorse. People buy a stock and then regret doing so if the price heads lower. Many of these disappointed traders and investors decide they want to sell their positions.But they don't want to lose money.They decide to hold onto their stock for the tim ...

Key TakeawaysIntel shares remain in focus this week after Reuters reported on Sunday that CEO Pat Gelsinger and other senior executives are expected to present plans later this month that involve shedding assets and reducing capital expenditures, as part of an effort to turn the company’s fortunes around. Since gapping down more than 26% in early August following the company's quarterly results, Intel shares have carved out two troughs, raising the possibility of a double bottom, a chart pattern that typica ...

Intel's Current Challenges - Intel's stock has lost more than half its value in 2024, driven by weak Q2 earnings and poor management guidance [1] - The company has faced execution failures, including slow response to AMD's rise in the consumer x86 CPU market and Apple's transition to in-house chip design [2] - Intel's lack of vision in recognizing the potential of AI has allowed NVIDIA to gain a significant lead in AI-optimized chips [3] Financial Performance in Q2 2024 - Intel reported Q2 2024 revenue of $12.8 billion, down 1% year-over-year, with adjusted EPS of $0.02, missing estimates by $0.08 [4] - The Intel Foundry segment contributed to earnings weakness, with a firm-wide operating margin of just 0.2%, down from 3.5% in Q2 2023 [4] - Net income attributable to Intel was a loss of $1.6 billion, compared to a profit of $1.5 billion in Q2 2023 [6] Cost Reduction and Restructuring - Intel plans to reduce costs by over $10 billion by next year, including a 20% cut in capex and a 15% or greater headcount reduction [5] - The company is suspending its dividend starting in Q4 2024, which will save $2 billion in cash next year [5][10] - Intel is considering strategic options, including selling or spinning off its foundry business, to improve profitability and focus on core product groups [10] Strengths and Product Portfolio - Intel's Client Computing Group (CCG) generated $7.4 billion in revenue in Q2, exceeding expectations by 9% year-over-year [7] - The company is on track to ship over 40 million "AI PCs" by year-end, with the Lunar Lake processor series launched ahead of schedule [7] - Intel's Data Center and AI (DCAI) unit posted a modest 3% decline in revenue, with new product launches expected to drive a rebound [7][8] Future Outlook and Strategic Moves - Intel's Sierra Forest Xeon 6 processor is set to begin shipping in September, and the Gaudi 3 AI accelerator is expected to compete with NVIDIA's offerings [8] - The company generated $8.2 billion in free cash flow last quarter and has $11.3 billion in balance sheet cash, providing flexibility to manage its $48 billion debt [10] - A potential sale or spin-off of the foundry business could unlock value and align Intel's core product groups with the successful models of competitors like AMD and NVIDIA [10] Stock Price and Valuation - Intel's stock is rated as a buy, with a potential upside target of $30.00 over the next year, driven by reset expectations and underlying strengths [11] - The company is expected to generate positive free cash flow, with consensus EPS estimates of $1.22 by next year, implying an 18x forward P/E ratio [11]

Core Viewpoint - Intel is planning to present a strategy to its board aimed at cutting unnecessary businesses and revamping capital spending to improve its financial performance, which has significantly declined in recent times [1][4]. Group 1: Business Restructuring - The plan includes selling off businesses, particularly the programmable chip unit Altera, which Intel can no longer afford to support financially [1][7]. - Intel has already separated its foundry business from its design business and has been reporting these segments' financial results separately since Q1 of this year [2][3]. - The mid-September board meeting is crucial for determining which businesses Intel will retain and which will be sold off [5][7]. Group 2: Financial Performance - Intel's market capitalization has dropped below $100 billion, a significant decline compared to Nvidia's $3 trillion valuation [3]. - The company reported a disastrous second-quarter earnings report in August, leading to a pause in dividend payments and a 15% staff reduction aimed at saving $10 billion [5][6]. - Intel expects to cut capital spending to $21.5 billion in 2025, a 17% decrease from the current year [4]. Group 3: Advisory and Strategic Planning - Intel has engaged Morgan Stanley and Goldman Sachs to advise on which businesses to sell and which to retain [4]. - The proposal does not currently include plans to split Intel's contract manufacturing operation but may be discussed in the future [2][8]. - Potential buyers for the Altera unit include infrastructure chipmaker Marvell, indicating interest from other companies in acquiring parts of Intel's business [7][8].

Key TakeawaysThe S&P 500 jumped 1% on Friday, Aug. 30, after the Federal Reserve's preferred inflation gauge showed price pressures were cool in July.Intel shares soared following reports that the chipmaker is exploring options to divest its foundry business.Subdued consumer spending and stiff competition dragged on Ulta Beauty's quarterly performance, and shares of the cosmetics retailer fell. Major U.S. equities indexes moved higher on Friday as the latest Personal Consumption Expenditure (PCE) data showe ...

Intel might be going through a big transformation.In this video, I will cover the recent updates regarding Intel (INTC 8.04%). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Aug. 30, 2024. The video was published on Aug. 30, 2024. ...

Investors cheered news that the chip titan is considering strategic options.Shares of Intel (INTC 7.82%) were on the move Friday in the wake of news reports that the company was considering the possibility of spinning off its manufacturing arm from its core chip design operation in order to rehabilitate itself and create value for shareholders.That news came after a disastrous earnings report earlier this month that included weak results, disappointing guidance, the elimination of the stock's dividend, and ...

Key TakeawaysIntel is reportedly having discussions around the possible spin off or sale of its foundry division, which makes chips for other companies.The company's stock is down 60% this year, making it the second-worst performing component of the S&P 500 index.The company reported a second-quarter loss of $1.6 billion, and analysts expect a $1 billion loss this quarter. A report that Intel Corp. (INTC) is considering the spin-off or sale of its foundry business lifted the tech giant's stock Friday. Share ...

Per a Bloomberg release, Intel Corporation (INTC) is undertaking a comprehensive strategic review of its businesses as it confronts severe financial difficulties and operational challenges.  This follows a dismal second-quarter 2024 performance that triggered a sharp decline in its stock. This review aims to address the company's current difficulties and pave a path forward in the highly competitive semiconductor market.INTC’s Major Strategic ChangesPer the review, the company will likely consider several s ...

Shares of Intel Corp (NASDAQ:INTC) are on the rise today, after reports that the semiconductor name is working with bankers to address weakness in its core business, exploring options such as a separation of its foundry unit. At last glance, INTC was up 7.8% at $21.69. Should these gains hold, Intel stock will mark its largest single-day percentage gain since October. The equity has been struggling following a massive 26.2% post-earnings bear gap on Aug. 2, hitting a nearly 14-year low of $18.84 on Aug. 8. ...