Intel Stock Charts Suggests Bearish Trend, Fundamentals Hint At Potential Rebound

Intel Corp‘s INTC stock plunged 59% over the past year, leaving investors to question whether the company is facing a long-term decline or gearing up for a rebound.

Chart created using Benzinga Pro

Technically, the signals are stark. Intel stock is trading below its eight, 20, 50, and 200-day simple moving averages, implying deep bear territory. The company’s moving average convergence/divergence (MACD) indicator is at a negative 1.05, implying negative trading momentum towards Intel stock. Further, the relative strength index (RSI) of 31.35 suggests it's edging into oversold territory.

Overall, the charts paint a very bearish picture for the stock, with the nearly oversold RSI lending some hope of a reversal.

The fundamentals paint a more nuanced picture.

Read Also: Taiwan Semi Founder Calls For New Strategy After Intel Chief’s Departure

Intel Stock: Chips, Competition, Challenges

Intel stock trades 10-20% below its book value—a fact that might limit downside risk.

Despite a flurry of bad press and declining stock performance, Intel generates $50 billion in annual revenue and maintains a healthy debt-to-equity ratio. While its profit margins have narrowed, even conservative estimates suggest profitability isn't off the table.

Intel's dominance in the CPU market is holding steady at 60-70%, primarily due to its grip on the OEM sector.

Meanwhile, Advanced Micro Devices Inc AMD is making gains, particularly in the DIY PC market. Stability issues with Raptor Lake CPUs and underwhelming Core Ultra chips have tarnished Intel's reputation, but its newer Lunar Lake and Arrow Lake chips aim to reclaim market share by 2025.

18A Process, Foundry Prospects

The much-hyped 18A chip process could be a game-changer, with defect densities nearing industry benchmarks.

Intel's foundry business has also shown potential, landing a deal to produce Amazon.com Inc's AMZN AI chips. However, execution risks loom large, and geopolitical factors like U.S.-Taiwan tariffs could shift the playing field dramatically.

The Battlemage Surprise

Intel's Battlemage B580 graphics card is another wildcard. While not groundbreaking in specs, its affordability has made it a hit, showcasing the company's ability to innovate in niche areas.

Intel remains a battleground stock, balancing bearish trends with signs of resilience. Investors face a complex choice: wait for recovery or brace for more downside.

Read Next:

• Intel CFO Hints at Possible Division Split as Company Struggles To Recapture Moat

Image: Shutterstock