New Price Target for Intel as Regime Change Turns Heads
The new boss for the beleaguered chip maker brings some rich history in the semiconductor space.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Intel INTC is in the news on Thursday and the stock is on the move after announcing a new CEO on Wednesday.
Lip-Bu Tan was named the new chief of the company after a brief exit from the board of directors. Some were saying Tan had a dispute over the company with then-CEO Pat Gelsinger. Gelsinger is now gone and a new regime is starting. Tan looks to be aggressive in moving the company ahead, focusing on what is working right and pushing its employees to excel.
The stock is up strong on Thursday as Wall Street applauds the move. A 15% gain so far puts Intel at the top of the list of best performers, but as usual we would need to see followthrough.
Tan worked for years with chip design company Cadence and helped to build its chips toward world-class performance. Shareholders of Intel are hopeful he can turn the trick with their company as well.
The chart is improved and was recently upgraded from bearish to modestly bullish. Notice the long base from the $19 to $21 area that defined a nice bottom for Intel. A recent pop in February then a retest of that $19 zone appears to be a "safe" place to enter the stock.
Other indicators are improved and are starting to look bullish. Money flow is weak though, while the stochastics (momentum, pane four) has started to surge. MACD is about to cross for a big buy signal, just a matter of days. It is currently right at the 200-day moving average, a stiff level of resistance. A move above that February high around $27.75 would prove to be very bullish, even more so if volume levels were strong.
