- Summary:
- Intel stock price snapped a five-session losing streak on forecast-beating earnings, but a vacant CEO post and weak guidance adds a twist.
Intel stock price recorded its first gain in five sessions on Friday after releasing its quarterly earnings results. The stock ended the session at +1.3% with the price at $20.01. It extended the run in Friday’s pre-market session, whereby it traded at $20.40 at the time of writing. The earnings also saw analysts revise their forecasts on the stock. Furthermore, uncertainty remains over when it will appoint a new CEO and who that will be.
CEO Search, DeepSeek and PC Market Share to Define Intel Stock Price
Intel (NASDAQ: INTC) reported earnings of $14.3 billion for the fourth quarter of 2024, exceeding analysts’ median forecast figure of $13.8 billion. Its Earnings Per Share (EPS) was $0.13, marginally higher than the forecast $0.12.
Despite forecast-beating revenue, Intel stock price is under pressure following a lower guidance for the current quarter. The company announced on Thursday that it expects revenues of between $11.7 billion -$12.7 billion, which fell short of the consensus forecast figure of $12.85 billion.
Baird analysts maintained a “neutral” rating in the stock but lowered their price target from $25 to $20. Similarly, Roth/MKM lowered their price target by $5 to $20. The company highlighted stiffening competition in the current financial year as the reason behind the relatively low revenue forecast.
However, a prolonged search for a substantive company chief executive could also weigh down on its performance. Intel did not provide hints on when the next CEO might take the reins, creating a sour sentiment among some investors.
On the upside, the company announced that it expects earnings on its newly-found faundry business to pick up by 2027. Also, it forecasts that it will regain its PC market share by 2026. Also, China’s DeepSeek phenomenon could help prop up demand for low cost AI chips like Intel’s. These factors could provide upthrust for Intel stock price in the coming weeks.
Intel Stock Price Prediction
The momentum on Intel stock price calls for further upside action above the $20.10 pivot mark. The stock will likely meet initial resistance at $20.90, but a stronger momentum could break above that level and potentially test $21.40.
Alternatively, INTC momentum will favour the downside if it breaks below $20.10. With the sellers in control, the stock is likely to go to the first support at $19.80. In addition, breaking below that level will invalidate the upside narrative. Also, such momentum could clear the path and take the stock lower to test $19.40.
