Chipmaker Intel is radically transforming its business model. It is building the first US-based chip manufacturing facility and another in Israel, with help from the US and Israeli governments, while launching a new line of artificial intelligence products.
However, these moves come at a time when computer sales have seen eight quarters of decline and competition from Nvidia and AMD has increased. Continue reading to learn more about Intel’s business outlook for 2024 and analyst forecasts for the stock.
|Symbol on the Invest.MT5 account:
|Date of potential trade:
|2 January 2024
|Take profit level:
|Position size (Invest.MT5 account):
- The Invest.MT5 account allows you to buy real stocks on 15 of the world’s largest exchanges.
Past performance is not a reliable indicator of future results or performance.
All trading activity is very risky and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades lose and others win. Start small to understand your own risk tolerance level and practice on a demo account first to gain knowledge before trading.
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Intel Business Outlook to 2024
Intel is entering a very active period of transformation of its business model. At the end of last year, Intel announced plans to build a new chip factory in the US and is the leading candidate for government funding for chips for the US military. Although no formal deal has been confirmed, Intel has been a strong supporter of President Joe Biden’s $53 billion Chips and Science Act, which aims to reduce reliance on foreign technologies. In 2021, Intel invested $20 billion in two Arizona-based chip factories.
The Israeli government also announced plans to provide a $3.2 billion grant to build a new $25 billion chip factory in southern Israel. While less than 10% of Intel’s workforce is based in Israel, the company has focused on building factories on three continents to compete with competitors.
Although Intel has invested heavily in new chip factories, it remains to be seen whether orders justify the costs. The company announced orders for chips from its factories in Arizona, which could increase if it becomes the only cutting-edge chipmaker in the United States.
The company also announced a number of new artificial intelligence products, including its new Core Ultra processors for ultra-thin laptops. However, computer sales are declining and are not expected to recover quickly. AMD and Apple also compete strongly in this area. Investors have been more interested in its new artificial intelligence chip called Gaudi3, aimed at generative artificial intelligence software, which will launch later this year.
While Intel’s plans are interesting, it’s worth remembering that the company has struggled in recent years. It wasn’t until 2022 that the company suffered the biggest quarterly loss in its history due to the collapse in demand for personal computers. Sales fell by 36% and the gross margin by 38%. Its next earnings report on January 25, 2024 will be an important measure of Intel’s plans going forward, and the mixed analyst ratings below show the uncertainty surrounding the stock.
What do analysts predict for Intel stock?
According to analysts polled by TipRanks for an Intel stock forecast over the past 3 months, there are currently 6 Buy, 20 Hold and 3 Sell ratings on the stock. The highest expected price target for Intel stock is $68 and the lowest is $17.
The average expected price target for Intel stock is $41.20.
An example of trading Intel stock
Here’s what an example of trading Intel stock might look like:
- Buying the stock around the $51.50 level to account for volatility.
- Aim for just below analysts’ high target of $68.
- Keep the risk low, maximum 5% of your total account.
- Investment horizon = 1 to 6 months
- For 10 bought Intel shares:
- If target is met = $165 in potential profit ($68 – $51.50 * 10 shares).
It’s important to keep in mind that the stock price is unlikely to rise in a straight line and may even continue to correct before reversing, especially given the uncertainty surrounding Intel’s plans and future investments.
Therefore, be sure to apply good risk management, which is one of the most important aspects of profitable trading. In fact, it is necessary to always know how much you can potentially lose on one of your positions.
Commissions are another factor to consider as they can eat into your profits. With Admirals’ Invest.MT5 account, you can buy US stocks from $0.02 per This means that buying 10 shares of Intel will incur a commission of $0.20 ($0.02 * 10 shares).
The minimum transaction fee is $1. So the example trade above would result in a total commission of only $1!
How to buy Intel stock in 4 steps
With Admirals, you can buy shares in companies like Intel with a low commission of just $0.02 per share. share and a minimum commission of only $1 on US shares.
- Open a trading account with Admirals to access the Dashboard.
- Click Trade on one of your live or demo accounts to open the web platform.
- Look for Intel at the top right of the screen to open the stock chart.
- Click Create new order at the bottom of the screen to open the order form.
Please note: Past performance is not a reliable indicator of future performance.
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Do you have a different approach?
Remember that all trading analysis and ideas are based on the author’s personal perspective and experience.
If you think Intel’s share price is more likely to fall, you can also short it from a CFD (Contracts for Difference) trading account provided by Admirals.
The Trade.MT4 and Trade.MT5 accounts allow you to speculate on the direction of stock prices using CFDs.
This means you can make buy (long) and sell (short) trades to take advantage of both rising and falling prices. To find out more about CFDs and how they work, you can refer to the article Understanding CFDs on the Stock Exchange.
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INFORMATION ON ANALYTICAL MATERIALS:
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- The analysis has been prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereafter “the author”) based on their personal judgment.
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