Intel Corporation (NASDAQ: INTC) has seen a 10% increase in its stock price over the past five trading days, driven largely by short-covering activities, according to analysts at Mizuho Securities.
Mizuho analysts explained,
“ARM ripped 8% Fri, AMD up 5% and near 8% past week, and even ON up 8% in the past week (likely on TSLA rally). If hedge funds long AI semis want to lower exposure and rotate into non-Semi longs, they will sell some NVDA, AVGO, MU, and cover shorts.”
Mizuho added that these shorts include Intel and Advanced Micro Devices (NASDAQ: AMD).
Analysts also noted that some investors believe the upcoming Semicon West conference between July 9 and July 11 could also help boost INTC.
Despite the squeeze, INTC shares are down more than 25% year-to-date. Shares of the technology company plummeted 15% after it posted its earnings on April 25. However, much of these losses have since been recovered. During the beginning of the year, Intel guided for Q1 revenue of between $12.2 billion and $13.2 billion. Actual revenue was $12.7 billion.
Cautious Tone From Mizuho
Mizuho remains cautious about Intel’s long-term prospects. The firm expressed skepticism about significant upside beyond the mid-$30s in the near term, citing concerns over potential negative catalysts such as lowered guidance for Q3 or delays in new product launches for PCs and data centers.
The firm also highlighted a “lack of exciting growth” for the company.
Intel has provided guidance for Q2 revenue in the range of $12.5 billion to $13.5 billion, compared to $12.9 billion reported in the same quarter last year, indicating modest growth potential.
Analysts covering the stock have set an average price target of $35.48 for Intel, closely aligning with its current trading price. The highest price target remains at $62.81, while the lowest is $15.70. This wide price target range suggests that INTC could witness volatile price action in the coming months.
Intel Stock (NASDAQ: INTC) Movement
INTC stock rose 1.77% on Tuesday, closing at $34.59, marking a 12.16% increase for the week. The trading volume was 97,341,425 shares, significantly higher than the average daily volume of 47.58 million.
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