In the past few sessions, Intel Corporation shares have suffered from a sharp fall and is now coming back on significant level support.
From a fundamental viewpoint, the security is cheap with a PER of 10.3x for 2012 and 9.53x for 2013. It is cheaper than the industry average. Besides, EV/Sales is low with a ratio at 2.13x for this year.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 24.74 area should stop this trend and allow a technical rebound towards USD 26.13. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in order to benefit from the USD 24.7 support area. A first target price will be the USD 26.1 resistance, ie a potential of 3.5%. A stop loss will be placed under the mid-term support currently tested. Only a crossing of USD 26.13 would validate a bullish trend in order to aim a higher target price.
Intel Corporation is the world leading manufacturer of semiconductor. Net sales break down by family of products and services as follows:
- computing architectures products (93.2%): processors and microprocessors (Pentium, Intel Xeon brands, etc.), graphics cards, chips and motherboards, connectivity products, cellular modems, Ethernet controllers, network components, storage products, etc. for PCs, servers, data centers, cloud networks, workstations, notebooks, Internet of Things, graphics architectures, intelligent peripherals and communications infrastructures. The group also develops associated software;
- advanced driving assistance and autonomous driving systems (3.8%; Mobileye);
- wafer manufacturing services (1.8%): accelerators, monolithic chips, silicon wafers, etc. The group also offers chiplet software and mask manufacturing equipment for advanced lithography;
- other (1.2%).
Net sales (including intragroup) are distributed geographically as follows: the United States (25.7%), China (27.4%), Singapore (15.9%), Taiwan (12.7%) and other (18.3%).