Intel stock holds near $100 after offering size expands to $20B
Intel has boosted the size of its offering of shares to $20bn, with a risk of dilution keeping a firm grip. The $98 to $100 levels represent the immediate territory of interest today.
Intel had boosted the offering size by $5 billion from its earlier $15 billion to a headline total of $20 billion. The US chip manufacturer priced the offering of approximately 210.5 million shares at $95 each for gross proceeds of around $19.95 billion prior to the exercise of the overallotment option by the underwriters. The transaction is scheduled to close on the 12th of August.
The fresh funding provides greater capacity in financing its manufacturing and AI infrastructure needs but also entails significant dilution due to such a massive issue of new equity, which normally weighs on share prices for several sessions post-announcement. The $95 pricing of the offering gives another immediate touchpoint for traders.
Bullish momentum strengthens above $100
The $98-$100 level for the INTC share price today represents key support/resistance territory. A break above $100 would be supportive of stronger buying conviction and would then lead to the next resistance at $106.50.
The short-term downtrend line appears to have been successfully broken out of, so this support area could hold firm, and continuing above the psychological level of $100 would be base case scenario.
Conversely, a break below $98 that is not supported by demand may result in the stock sliding toward support around $91.70.
U.S. CPI raises short-term volatility risk
The release of the July data for U.S. CPI could bring added intraday risk into today’s session.
With Intel having largely absorbed the impact of substantial new share issuance and its stock trading just below a former support zone, a larger-than-expected surprise in U.S. CPI could trigger heightened price action today.
Short-term traders should be mindful of the risk of additional volatility and position accordingly.
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