Intel Stock on Edge Ahead of Earnings
Intel is still one of the best-performing companies in the United States this year. It has jumped by 150% since January and by 320% in the last 12 months, with its valuation soaring to over $477 billion.
Intel is also benefiting from the ongoing AI agent growth, which has led to a surge in demand for CPUs. The most recent results showed that its revenue jumped by 7% to $13.6 billion, while its gross margin rose to 39.4%. It also reduced its R&D and MG&A costs by 8%.
This week’s earnings will provide more information about its growth. Benzinga data shows that its revenue will come in at $14.4 billion, up by 12.17% YoY. Its guidance for the third quarter is expected to be $15.13 billion, up by 10% YoY. Judging by the ongoing AI boom, chances are that its numbers will be better than expected.
INTC Stock Has Formed a Double-Top Pattern
Technicals suggest that Intel’s stock may drop further after its earnings report. It has formed a double-top pattern at $133.15 and a neckline at $98. A double-top pattern often leads to a bearish breakout. It has already moved below the neckline, the 50-day moving average, and the 38.2% Fibonacci Retracement level.
Therefore, these technicals suggest that the stock may drop further after its earnings report. If this happens, the stock may move to the 50% retracement level of $80.
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