After A Disappointing Investor Conference, Intel's Chart Suggests Waiting For A Bounce To Sell

Summary:

• Intel Corporation INTC sank over 5% on Thursday after the company said that it expects single digit growth for the coming years.
• We see additional risk for a few more weeks before the stock bounces along with the start of a new market cycle.

Intel Stock Weekly Chart

At the company’s latest investor conference, CEO Bob Swan said he expects “single digit” percentage growth over the next three years for both earnings and revenue. He does see this being mitigated by “double digit” growth in chips targeting the data center market segment.

He confessed, “We let you down and we let ourselves down. We’re a team built on credibility and we know we have to earn and maintain your credibility.”

Our analysis on this stock focuses on its market cycles. We see Intel shares as being in the declining phase of its current cycle, which will likely last for a few more weeks. We see it testing below $46, with a rebound in the summer offering a selling opportunity.

Related Links:

Analysts Weigh In On Intel Following Guidance Update

BMO Downgrades Intel As Gross Margins Slip