:max_bytes(150000):strip_icc()/GettyImages-2235610733-b13bab816fa34d0dbdc786af0e80337c.jpg "Intel Stock’s Torrid Rally Is About to Face Its Latest Test. Here’s What You Need to Know.")
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Key Takeaways
- Intel is set to post fourth-quarter earnings after the closing bell today, following a recent rally for the stock.
- Ahead of the release, several analysts said they expect demand for AI products to help drive strong results.
Intel’s red-hot rally is about to face a big test.
The chipmaker is slated to report fourth-quarter results after the market closes today. The results are due after a strong run for the company’s stock in recent weeks that has seen Intel (INTC) add nearly half of its value since the year began. A show of support from President Donald Trump earlier this month, rumors about potential new clients, and some signs of stronger-than-expected demand for its AI products have all added to growing optimism around the stock.
The results could bring further action in Intel’s shares. Options pricing suggesting that traders expect shares could move up to 9% in either direction following the results.
Why This Matters to Investors
Tonight’s earnings could add fuel to Intel’s recent rally, reinforcing hopes for a turnaround. However, rising expectations heading into the release could also make it more difficult for the chipmaker to impress with its results.
Intel is expected to report adjusted earnings per share of 9 cents on revenue of $13.41 billion, according to estimates compiled by Visible Alpha, with analysts at HSBC, KeyBanc, and Wedbush expecting the company to top those projections on strong demand for its server CPUs used in data centers.
HSBC analysts earlier this week upgraded the shares to “hold,” setting a $50 price target that is roughly $5 above the Visible Alpha average.
Most analysts have hesitated to recommend buying the shares amid lingering concerns about Intel’s business and ability to compete with rivals, suggesting they are waiting for more concrete evidence that Intel’s turnaround plans are working.
Shares of Intel were down less than 1% in recent trading as broader markets rose. Read Investopedia’s full coverage of today’s trading here.
