Intel Secures $20B for New Factories: Trading Idea for 22/03/24Intel Corp., a leading chip manufacturer, is set to receive almost 20 billion USD in the US for the construction of chip manufacturing plants. This investment is part of a program to revitalise the American chip industry, including 8.5 billion USD in grants and 11 billion USD in loans. Federal funds are expected to start flowing by the end of the year.
The US plans to spend nearly 100 billion USD to support the industry, with new plants slated for construction in Ohio, Arizona, Oregon, and New Mexico. The escalating crisis in Taiwan has necessitated these measures amid political risks that local chip production could fall under China's control.
A technical analysis of Intel Corp.'s stock chart is intriguing in light of this development.
On the daily (D1) timeframe, a support level has formed at 41.91, with resistance at 46.61. Since the beginning of February this year, multiple rebounds from this support level have occurred. In case of another rebound, the stock price is highly likely to rise and break through the resistance.
On the hourly (H1) timeframe, long positions might be interesting when rebounding from the 41.91 level, with a short-term target at 41.26. Maintaining a long position up to 56.25 could be considered in the medium term.
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Intel ($INTC) Gets $20 Billion in US GrantsIn a landmark move aimed at revitalizing the domestic semiconductor sector, the Biden administration has announced a staggering $20 billion investment package for Intel Corporation ( NASDAQ:INTC ). The funds, comprising $8.5 billion in grants and up to $11 billion in loans, represent the largest award under a program designed to bolster the American chip industry.
The substantial investment is set to fuel Intel's ambitious expansion plans, with the company pledging more than $100 billion in US investments. This includes initiatives to ramp up production of cutting-edge semiconductors at sprawling facilities in Arizona and Ohio, as well as supporting research and development endeavors and advanced packaging projects at smaller sites in Oregon and New Mexico.
President Joe Biden himself is slated to visit an Intel campus in Phoenix to announce the preliminary agreement, highlighting the significance of the deal. Intel's selection as the recipient of the first Chips Act funding deal for advanced chipmaking facilities underscores the company's pivotal role in the administration's efforts to reinvigorate the nation's chip manufacturing capabilities.
The announcement has already triggered a positive market response, with Intel shares surging by 3.5% in premarket trading. The news comes at a crucial juncture for Intel, which has been engaged in an ambitious turnaround bid under CEO Pat Gelsinger's leadership.
Gelsinger's strategic vision includes not only expanding Intel's foundry business but also reclaiming the company's technological prowess, which had lagged behind Asian competitors in recent years. Securing high-profile partnerships, such as with Microsoft Corp., further solidifies Intel's position as a key player in the global semiconductor landscape.
The significance of the government's investment in Intel extends beyond mere financial support. It represents a concerted effort to reverse decades of offshoring semiconductor production and to bolster America's competitiveness in an increasingly vital industry.
While the funding is a significant step forward, Gelsinger acknowledges that more may be needed to fully address the challenges facing the US chip industry. He suggests that additional initiatives, akin to a hypothetical "Chips II," may be necessary to sustainably restore America's chip manufacturing capabilities.
The agreement between Intel and the government underscores a shared commitment to revitalizing the semiconductor sector, with the potential to create tens of thousands of jobs across multiple states. Beyond commercial production, Intel is also set to receive funding for the manufacturing of military and intelligence chips, further highlighting the strategic importance of the initiative.
As Intel embarks on this transformative journey, eyes are on the company to deliver on its promises and drive innovation in the semiconductor space. With the backing of substantial government support, Intel is poised to play a pivotal role in reshaping the future of American chip manufacturing and securing its position as a global leader in the industry.
Intel Has Fallen. Can it Get Up?Intel has fallen, and some traders may think it can’t get up.
The first pattern on today’s chart is the bearish gap on January 26, triggered by weak guidance. The chipmaker has failed to recover since, even as the broader semiconductor index surged to new record highs. That may suggest it’s less favored than peers.
Second is the January 17 close of $46.06. INTC tried to move above that level a few times in early March but couldn’t hold. Has old support become new resistance?
The 50-day simple moving average has also turned lower since mid-February and prices seem to be stalling at it. That may reflect a weakening of the intermediate-term trend.
Finally, yesterday's close below the 21-day exponential moving average may signal bearishness in the shorter term.
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Looking for INTC continuation on 3-12-24Looking for INTC continuation on 3-12-24
The chart shows a bounce on the 3 Day low yellow.
Pink is 8 day low
The blue line is the 5EMA on Day timeframe.
A stock with momentum typically bounces within this range.
There are a couple of EMA combo clouds 5/13 and 55/100.
The ttm squeeze set to 1 hour timeframe shows squeeze release
The bottom frame shows the RSI and %R trend
I have added trendlines for each bull push
Can INTC breakout from a trinagle ? LONGINTC on a 180 minute chart is in a flat bottom triangle since before earnings. The earnings
report was a beat of 20% on earnings and 1.5 % on revenue but apparently disappointed greedy
traders expecting more. Price has been mostly sideways. I saw the dip on Tuesday to Thursday
as an opportunity to take a call option trade for Friday which had a great return. I see INTC
ready to gain price and break out of the triangle. It has a P/E ratio much lower than some of
the high flyers in its subsector making it attractive to value-seeking investors and traders
who like to buy at the lows. Price is now above the long-term POC line where buying pressure
should predominate. Having seen the rise on Friday, some short sellers may begin to buy to
cover and close their positionons especially those with put options from which the time to
realize profits is now.
Intel: Bullish Gartley with Bullish Divergence Targeting $64.19Leading to the most recent earnings report, Intel had reached a 61.8% retrace from High to Low and was showing signs of reversing, so I decided to take profit on Intel. Now, upon spotting a potential trend continuation Bullish Gartley I now think it's possible for INTC to recover from here and perhaps go all the way for the 0.886 at $64.90, so I will be buying back in at these lower prices.
For context on the previous bullish setup, check the chart below: