Intel stock falls amid seller pressure and ongoing foundry unit losses

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Intel slides 5.65% to $92.57 today

Highlights

Intel reported Q2 revenue of $16.13 billion, up 25.42% year over year and above the $14.45 billion estimate.
The Crescent Island GPU D-Series launched to target budget inference computing, advancing Intel's AI hardware range as foundry losses persist.
Shares of Intel fell 5.65% to $92.57 with bearish momentum and are expected to trade in a $88.46 to $98.17 range, with a high probability of further downside.

Operational strain persists despite strong revenue and product launch

Intel reported strong Q2 revenue growth of 25.42% to $16.13 billion, surpassing the $14.45 billion analyst estimate, according to Yahoo Finance. This robust result underscores solid underlying momentum in the company's business, yet has coincided with a period of increased operational strain as its foundry unit continues to post losses. Additionally, the launch of the Crescent Island GPU D-Series for budget inference computing marks a strategic move to broaden Intel's AI hardware offerings, though price action has remained under broader selling pressure.

Momentum turns bearish with oversold signals and resistance near term

On the technical front, INTC is trading below the MA-20 at $100.41 and MA-50 at $105.63 on the hourly chart, reflecting prevailing short- to medium-term weakness. The price is positioned above the MA-200 long-term support at $83.98, while the Ichimoku Kijun at $101.76 acts as immediate resistance. Key momentum indicators are bearish: RSI sits at 25.71 (Sell), both MACD and ADX are in Sell territory, and Bull/Bear Power alongside CCI show oversold and seller-dominated conditions. Stochastic RSI and Awesome Oscillator are neutral, and session volatility remains subdued near the intraday low. No major positive divergence across oscillators is evident.

Downside risk dominates as price consolidates in volatility corridor

In the short term, INTC is expected to trade within a range of $88.46 to $98.17, with a very high probability of downward movement and a low likelihood of an upside reversal. The base scenario envisions consolidation within this volatility corridor. For the bearish case, a clear breakdown below $88.46 could trigger stronger downside momentum, while a bullish outcome would require a decisive break above immediate resistance.

Anton Kharitonov, expert at Traders Union, sees Intel’s strong Q2 revenue as a positive signal but notes the continued losses in the foundry unit and prevailing technical weakness. He believes downward momentum and weak sentiment overshadow recent product innovation. Base scenario is for consolidation between $88.46 and $98.17, with little sign of bullish reversal. "Until Intel reclaims key resistance levels and addresses its operational challenges, I remain defensive on the stock."

Previously it was reported that Intel faced sustained downside risk amid financial constraints and heightened competition, with technical signals indicating a bearish bias. The current decline below key moving averages and deepening operational pressures reinforce that risk, making $88.46 the crucial support level to monitor for any potential shift in trend.

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.