INTC climbs over 3% after announcing Tesla chip manufacturing deal and stronger AI business focus

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Intel rises 3.29% today on Tesla deal

Highlights

Intel will manufacture chips for Tesla using its upcoming 14A process as part of a new agreement.
AI-related segments now account for about 70% of Intel revenue as its sales transition from shrinking to growing.
Shares of Intel sit below key short- and medium-term moving averages with a projected 5-day range of $85.93 to $99.53.

Revenue mix shifts to AI after Tesla chip deal and sales turnaround

Intel signed an agreement to manufacture chips for Tesla using its upcoming 14A production process. The company reported that AI-related businesses now contribute about 70% of its revenue, following a transition from shrinking to growing sales over the past year. Improved execution in restructuring and manufacturing was also disclosed.

Anton Kharitonov, expert at Traders Union, sees Intel's recent gains as fragile. He notes that technical momentum remains bearish, with the price stuck below key moving averages and indicators like MACD and ADX pointing to further weakness. Kharitonov points out that despite AI revenues and the Tesla partnership, sellers remain dominant, confirmed by oversold signals and negative intraday momentum. The post-gap move may draw in short-term buyers, but he doubts its sustainability given prevailing downtrend signals. "While headlines look positive, I see risk of lower prices unless Intel reclaims the $93.82 resistance soon," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, highlights Intel's strategic pivot toward AI and the Tesla chip deal as strong drivers of future growth. He believes the revenue resurgence and improved execution set a constructive backdrop for investors. Karapetjanc sees the current oversold conditions as an attractive entry opportunity, with the longer-term bullish structure supported by demand from high-growth verticals. "Investors should focus on the powerful transition to AI, as market offers multiple setups for further upside," he asserts.

Jainam Mehta, market strategist, notes Intel's price action is caught between persistent short-term bearish momentum and longer-term support above the 200-day moving average. He identifies the gap-up and oversold signals as a setup for tactical range trading in the coming sessions. Mehta views the $93.82 resistance and $89.27 support as key to timing entries, with potential for a breakout if sentiment shifts. "A sustained move above $93.82 could trigger a quick upside move, while a break below $89.27 may offer contrarian short trade opportunities," Mehta says.

Short- and medium-term bearish momentum persists despite oversold signals

Intel is trading below the 20-day ($112.56) and 50-day ($103.16) moving averages, signaling persistent short- and medium-term bearish pressure, but sits above the 200-day ($84.54), confirming longer-term support. The nearest levels to watch are the near-term ceiling at $93.82 and the near-term floor at $89.27. Momentum signals are negative. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both forecast further selling pressure, while the Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) indicate oversold conditions. Bull/Bear Power (BBP) confirms sellers are dominating intraday momentum, and it signals an oversold setup. The Awesome Oscillator (AO) also supports the prevailing downtrend. The stock is up at $92.73, rising $2.96 or 3.29% after an upside gap of around $4.03 (4.49%). Price is currently near the high of its intraday range, with intraday volatility at 5.10%. Post-gap, the tone is one of strength toward highs, in contrast to ongoing bearish momentum signals.

Earlier, analysts noted that despite operational challenges, Intel’s partnership with Tesla and a surge in price added a new dimension to its otherwise neutral-to-bearish technical outlook. The current analysis reinforces this stance by highlighting continued bearish momentum signals despite a recent price rebound, with a critical focus now on whether the stock can decisively move beyond the $93.82 resistance or slip below $89.27 support in the upcoming sessions.

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

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