Why This Investor Bought Intel’s Post-Offering Dip
Key takeaways
- Intel's upsized stock offering and potential foundry customer wins create a buying opportunity, but the stock's technical tests will be crucial for its future performance.
- Intel's 50-day simple moving average is $109.84
- Intel's 200-day simple moving average is $69.18
- Intel's 200-day exponential moving average is $76.87
What happened
Intel shares rose 1.37% to $99.05 in premarket trading after an upsized $20 billion common stock offering, with investors weighing the move against optimism over potential foundry customer wins.
Why it matters
Intel's decline after announcing the offering created a buying opportunity, according to KKM Financial founder Jeff Kilburg, and the stock's technical tests, including reclaiming its 50-day moving average, will be crucial for its future performance.
Short-term and longer-term
Short-term. Intel's stock price has been under pressure, but the recent upsized stock offering and potential foundry customer wins create a buying opportunity, and the stock's technical tests, including reclaiming its 50-day…
Longer-term. Over the next few months, the question for these shares is whether this changed the longer case, or it is one event in a longer story.