Intel stock closes higher on Friday, ahead of most other Dow Jones members

Stifel reduced its price target on Intel stock.
Intel is scheduled to deliver earnings for Q3 next week.
Wall Street expects adjusted EPS of $-0.03 on revenue of $13.04 billion.
Dow Jones closes 0.6% lower despite bouncing around during the session.

Clay Webster FXStreet

Intel (INTC) stock advanced to highs above 3% on Friday despite a prominent Wall Street analyst cutting his price target on the stock. Stifel’s Ruben Roy lowered his price target on Intel from $28 to $25.

INTC stock ended Friday up 1.5% to $22.67. The Dow Jones Industrial Average (DJIA), of which Intel is a member, closed 0.6% lower as the NASDAQ gained a similar amount.

Intel stock news

Intel is coming up on its third-quarter earnings release on October 31, which happens to be Halloween. The market is hoping to get through the spookiness with adjusted earnings per share of $-0.03 next week and revenue of $13.04 billion.

Intel earned $0.41 on $14.16 billion one year ago in that third quarter.

Stifel’s Roy says that a lot will depend on whether or not Intel can execute on its 18A initiative. The 18A project is Intel Foundry’s RibbonFET transistor, which replaces its FinFET transistor with a gate-all-around (GAA) transistor model. Roy also hopes to hear about the technology roadmap for the 14A node, Intel’s platform for a high numerical value EUV foundry process.

RibbonFET from Intel's investor relations website

On Thursday, Intel discovered that the EU's Court of Justice denied a $1.2 billion antitrust case from moving forward, unusually good news for a semiconductor that has had nothing but bad news of late.

CEO Pat Gelsinger is still searching for a minority partner to take a stake in Altera, the programmable chip unit it bought in 2015. Intel values it at $17 billion, only a little higher than what it paid a decade ago, as it searches to free up capital for its large-scale pivot toward the foundry segment of the semiconductor industry.

Intel stock forecast

INTC stock has risen above the 50-day Simple Moving Average (SMA) over the past month, which is a good look for the struggling semiconductor. Now shares need to overtake resistance at $24.90. The 100-day SMA at $25.52 is just a big higher.

Everything hings on next Thursday's earnings release though, so positioning for technical reasons loses its attractiveness.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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