Intel Stock Just Set New Record Highs Again. Did You Miss the Boat?

• Intel (INTC) has surged 360% over the past year, driven by strong technical momentum and data-centric business expansion.
• INTC currently holds a 100% “Buy” technical opinion from Barchart.
• Shares are trading at new all-time highs.
• Despite robust growth and analyst upgrades, I believe INTC is overvalued and the market has overreacted, making current entry unattractive.

Today’s Featured Stock

Valued at $425 billion, Intel (INTC)  is one of the world’s largest semiconductor companies and primary suppliers of microprocessors and chipsets. Most excitingly for investors, it is gradually moving into data-centric businesses such as AI and autonomous driving.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. INTC checks those boxes. The Trend Seeker issued a new “Buy” signal on April 2. Since then, the stock has gained 84.68%.

Barchart Technical Indicators for Intel

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Intel scored an all-time high of $95.69 on April 30.

• Intel has a Weighted Alpha of +404.19.
• INTC has a 100% “Buy” opinion from Barchart.
• The stock has gained 363.71% over the past 52 weeks.
• Intel has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $94.24 with a 50-day moving average of $54.50.
• INTC has made 16 new highs and gained 126.28% over the past month.
• Relative Strength Index (RSI) is at 85.15.
• There’s a technical support level around $88.76.

Don’t Forget the Fundamentals

• $435 billion market capitalization.
• 1,408.67x trailing price-earnings ratio.
• Analysts project revenue to grow 10.75% this year and another 9.80% next year.
• Earnings are estimated to increase 158.50% this year and an additional 36.37% next year.

Analyst and Investor Sentiment on Intel

• The Wall Street analysts followed by Barchart give the stock 8 “Strong Buy,” 1 “Moderate Buy,” 32 “Hold,” 1 “Moderate Sell,” and 1 “Strong Sell” opinion with price targets between $36 and $111.
• Value Line ranks the stock “Below Average” with 3-5-year price targets between $55 and $80.
• CFRA’s MarketScope rates the stock a “Buy” with a price target of $100
• Morningstar thinks the stock is 40% overvalued with a fair value of $60.
• 563,730 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• Short interest is 2.87% of the float with 1.21 days to cover the float.

The Bottom Line on Intel

Intel has everything going for it: growth, profitability, price momentum and analyst revisions. But oh, that valuation! Intel is more than a little ahead of its skis and is pricey at this point. I think the market has overreacted and we missed the boat on this one

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.