Intel INTC shares soared 9.3% in the last trading session to close at $21.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% gain over the past four weeks.
Intel is taking several initiatives to gain a strong foothold in the expansive AI sector. The company recently introduced Intel Core Ultra (Series 2) processors designed to redefine mobile computing for a wide range of use cases such as gaming, content creation, IT applications and more. This state-of-the-art lineup brings significant advancements in AI capabilities, enhanced performance and efficiency, setting new benchmarks for AI computing. In 2025, the company is set to prioritize AI integration across INTC’s processors and platforms to position itself as a leader in the growing market of AI PCs.
The company expanded its strategic collaboration with Microsoft. Leveraging complementary capabilities, the organization aims to launch a broad set of Intel Core Ultra 200V series Copilot+ PCs for commercial customers in the coming months. These factors along with takeover speculations instilled investor optimism, which probably propelled the share price appreciation.
This world's largest chipmaker is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -77.8%. Revenues are expected to be $13.77 billion, down 10.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Intel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on INTC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Intel belongs to the Zacks Semiconductor - General industry. Another stock from the same industry, STMicroelectronics STM, closed the last trading session 2.8% higher at $25.37. Over the past month, STM has returned 0.9%.
STMicroelectronics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.35. Compared to the company's year-ago EPS, this represents a change of -69.3%. STMicroelectronics currently boasts a Zacks Rank of #5 (Strong Sell).
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
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