Intel stock slips below key support amid weaker-than-expected CHIPS Act funding
Intel’s recent price slump has been influenced by a disappointing funding announcement.
As of April 2, 2025, Intel Corporation (NASDAQ: INTC) is trading at $22.05, marking a decline of 2.88% from the previous close.
The intraday range spanned from a low of $21.66 to a high of $22.70, underlining the elevated volatility surrounding the stock amid a turbulent market phase. This downward movement reflects a continuation of the broader bearish trend that has dominated Intel's performance since early Q1 2025.
Intel is currently trading below both its 50-day and 200-day simple moving averages, with the 50-day SMA sitting around $23.70 and the 200-day SMA near $25.00. This technical configuration signals sustained bearish momentum and the absence of a near-term reversal pattern. The Relative Strength Index (RSI) is nearing oversold territory at 33, suggesting a possible short-term rebound, although no clear bullish divergence has been confirmed.
INTC stock price dynamics (January 2025 - April 2025). Source: TradingView.
The primary support level is located at $21.50, which acted as a floor during recent sessions. If selling pressure intensifies and this level breaks, the next major support can be found at $20.00, a psychologically significant level and one not seen since the 2022 market correction. On the upside, resistance is expected around $23.50, near the 50-day moving average. A decisive break above this level could open the path toward $25.00, where the 200-day SMA and prior consolidation zones intersect.
Factors influencing Intel recent performance
Intel’s recent price slump has been directly influenced by a disappointing funding announcement. The company was granted $7.9 billion in direct funding under the CHIPS and Science Act, slightly below the widely anticipated $8.5 billion. This shortfall has prompted investor concern about Intel’s ability to aggressively scale its foundry services and semiconductor capacity at the pace required to compete with global leaders.
The U.S. Department of Commerce cited delays in Intel's construction plans and underperformance in hitting technical targets as partial reasons for the reduced allocation. This has cast a shadow over Intel’s larger ambitions to regain leadership in chip manufacturing, particularly against more agile competitors like TSMC and Samsung.
Adding to the bearish sentiment, Citi analysts reiterated their neutral stance on Intel with a modest $22 price target. This aligns with the current market valuation, indicating limited upside unless catalysts emerge. Broader macroeconomic conditions—such as elevated interest rates and cautious capital expenditure across the tech sector—are also weighing on investor appetite for semiconductor equities, particularly those undergoing restructuring or expansion.
Short-term outlook for INTC
In the short term, Intel’s stock price is expected to remain under pressure, trading within a range between $21.50 and $23.50. A bounce from the lower bound could lead to a test of resistance at $23.50, especially if the company issues any positive operational updates or secures additional strategic partnerships. However, failure to hold above $21.50 would likely result in a drop toward $20.00, a level that could prompt more aggressive buying or institutional support.
Given the technical weakness and cautious investor sentiment, the base case scenario sees Intel hovering between $21.50 and $22.50 over the coming weeks. A bullish breakout would require not only improved sentiment but also tangible progress in project execution and clarity on future government support. Until then, downside risks remain elevated, and traders should maintain a cautious stance.
Last week, the stock rebounded strongly from its 52-week low of $18.51, signaling renewed investor confidence. Despite remaining just below its yearly high of $45.41, the upward momentum highlights optimism around the company’s strategic overhaul, though technical indicators suggest caution at current levels.
