-6.25% for Intel — selling dominates despite strong AI demand and bullish forecasts

Traders Union
All News
Financial News
Intel slides 6.25% today to $37.03

Highlights

Intel shares dropped 6.25% intraday to $37.03, trading below the MA-20 ($38.20) but well above the MA-50 ($32.56) and MA-200 ($24.39), reflecting short-term selling despite bullish medium- and long-term trends.
Intel will manufacture AI chips for Microsoft, reports strong demand for its Gaudi 2 AI accelerators, and advances with the next-generation Intel 18A node for internal and external customers.
Despite high volatility and a sharp gap down, probability of price increase over the next five trading days exceeds 80%, with expected range between $38.60 and $39.92.

Foundry expansion advances as AI chip orders surge

Intel has announced plans to manufacture AI chips for Microsoft as part of its broadening foundry business and ongoing expansion into artificial intelligence. The company recently unveiled its Gaudi 2 AI accelerator chips and reported a notable increase in AI chip orders, highlighting growth in demand for AI solutions. Progress toward next-generation manufacturing, including the advanced Intel 18A node for internal and customer use, was also emphasized.

Bullish momentum diverges from intraday selling and oversold signals

Intraday momentum is mixed: daily MACD and ADX remain strong, indicating underlying bullish momentum despite the sharp daily drop. Most short-term oscillators and BBP show an oversold market, while RSI is still neutral at 50.8. Sellers clearly dominate, evidenced by the price falling 6.25% intraday and opening sharply lower with a significant gap down from $39.50 to $38.06. The stock currently sits near today’s low in a day of high volatility and heavy pressure after the open. There is a clear divergence as strong daily and weekly momentum signals contrast with the immediate oversold and negative intraday action.

Limited downside risk as bullish scenario hinges on reclaiming resistance

Over the next five trading days, Intel is expected to trade between $38.60 and $39.92, with an average near $39.26. The probability of price increase is very high (more than 80%), as all four weekly trend indicators remain on Buy. A decrease is seen as much less likely. The baseline scenario suggests range-bound movement, with price consolidating near current levels. The bullish scenario develops if the price can reclaim the $37.75 — $38.20 resistance zone, opening a path toward $39.92. The bearish scenario comes into play if selling continues and the stock closes decisively below $36.92, exposing support near the MA-50 at $32.56.

Viktoras Karapetjanc, expert at Traders Union, believes Intel’s robust expansion into AI chip manufacturing for heavyweight clients like Microsoft, paired with fast-growing demand for its Gaudi 2 accelerators, significantly boosts the company’s fundamental backdrop and investor sentiment. Despite short-term selling pressure and recent volatility, he sees the underlying momentum as constructive, supported by medium- and long-term bullish trends and strong weekly signals. Karapetjanc notes that as long as Intel holds above the key support zone, the probability of a rebound remains very high. In his words: "Intel’s positive news flow and strong momentum put the odds clearly on the upside — I expect consolidation to give way to another rally if resistance at $38.20 is reclaimed."

Previously it was noted that Intel experienced a historic surge following Nvidia's major equity investment and new strategic partnership. The company's recent momentum was discussed in detail in the article on the company's recent momentum.

Source of Data: INTC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.