<\/p>\n
Intel CEO Lip-Bu Tan has made a major purchase of Intel stock as the chipmaker ramps up its AI ambitions.<\/p>\n
Tan purchased 105,263 Intel (INTC) shares for $95 each on Aug. 11, spending roughly $10 million, according to a Form 4 he filed with the Securities and Exchange Commission. The purchase increased his beneficial ownership to about 1.33 million shares.<\/p>\n
The insider buy comes at a pivotal time for Intel. The company just raised nearly $20 billion in fresh equity as it ramps up spending on manufacturing and tries to turn its foundry business into a credible alternative to Taiwan Semiconductor Manufacturing (TSM).<\/p>\n
Intel shares have surged roughly 162% this year after investors grew more optimistic about the chipmaker’s turnaround and AI prospects, although the stock has pulled back roughly 26% from its June high.<\/p>\n
Intel closed at $96.69 a share on August 18, up 162% year-to-date.<\/p>\n
Getty Images<\/p>\n
Intel raises $20 billion as AI spending accelerates<\/p>\n
Intel last week sold about 210.5 million shares at $95 each, increasing the offering from an initially planned $15 billion to $20 billion after strong investor demand.<\/p>\n
The offering was priced at roughly a 2.6% discount to Intel’s previous closing price and reportedly attracted more than $100 billion in orders.<\/p>\n
Intel expects net proceeds of roughly $19.7 billion and plans to use the money for general corporate purposes, including capital expenditures and working capital.<\/p>\n
Related: Cathie Wood sells $11.6 million of surging tech stock<\/p>\n
The new shares dilute existing shareholders, but they also give Intel more cash to fund an increasingly expensive turnaround without taking on another large chunk of debt.<\/p>\n
Intel recently increased its 2026 capital expenditure forecast from $18 billion to more than $20 billion, with spending expected to rise further in 2027.<\/p>\n
The company is also pushing ahead with its next-generation 14A manufacturing process, which is expected to reach high-volume production in 2028.<\/p>\n
Intel earnings show AI demand accelerating<\/p>\n
Intel’s latest results gave investors more reason to believe the turnaround is gaining traction.<\/p>\n
On July 23, the company reported second-quarter adjusted earnings of 42 cents a share on revenue of $16.13 billion. Analysts had expected adjusted earnings of 21 cents a share and revenue of about $14.4 billion.<\/p>\n
Revenue jumped 25% from a year earlier, Intel’s strongest year-over-year growth in more than 15 years.<\/p>\n
The Data Center and AI business was particularly strong, with revenue surging 59% to $6.3 billion. Client Computing and Physical AI revenue increased 13% to $8.9 billion, while Intel Foundry revenue climbed 31% to about $5.8 billion.<\/p>\n
“AI is driving unprecedented demand for compute,” Tan said following the results, “As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”<\/p>\n
Intel expects third-quarter revenue of $15.8 billion to $16.8 billion and adjusted earnings of 38 cents a share.<\/p>\n
The foundry operation remains a major challenge, however. Intel Foundry posted an operating loss of about $2.1 billion in the second quarter, despite improving yields and factory utilization.<\/p>\n
Veteran trader sees bullish setup for Intel stock<\/p>\n
Stephen Guilfoyle, a veteran analyst with more than 30 years of trading experience, is watching Intel’s technical setup after the stock’s summer pullback.<\/p>\n
Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation.<\/p>\n
Intel formed what Guilfoyle described as a bearish “rising wedge” through the spring, with the shares eventually peaking on June 30 before falling below both their 21-day exponential moving average and 50-day simple moving average, according to a research note on TheStreet Pro.<\/p>\n
Related: 5-star analyst sets alarming SpaceX stock price target<\/p>\n
But the chart has changed.<\/p>\n
Guilfoyle now sees a potential inverse head-and-shoulders pattern, a formation that can signal a bullish reversal, with a pivot around $103.<\/p>\n
“The inverse head-and-shoulders is just about complete,” Guilfoyle wrote, although he said Intel still needs to reclaim its 50-day moving average to bring professional traders more decisively back into the stock.<\/p>\n
Momentum indicators are also improving.<\/p>\n
Intel’s relative strength indicator has recovered toward neutral territory, while its moving average convergence divergence, or MACD, has turned more constructive. The 12-day exponential moving average has crossed back above the 26-day EMA, another technical signal Guilfoyle views as bullish.<\/p>\n
His target price is $128, with $103 serving as the initial pivot.<\/p>\n
Guilfoyle said he purchased small long position last week, and would consider adding to the position on weakness toward Intel’s 200-day moving average, while a break below that level would be his signal to exit.<\/p>\n
Bank of America remains bullish on Intel stock<\/p>\n
Bank of America analyst Vivek Arya estimates the $20 billion stock sale will result in roughly 4% to 5% earnings-per-share dilution because of the higher share count.<\/p>\n
Still, Arya views the capital raise as a net positive, arguing that the size of the offering could be a sign of management’s increasing confidence in Intel’s foundry ambitions.<\/p>\n
Arya maintained his Buy rating on Intel while lowering his price target to $145 from $160 to account for the dilution and lower valuation multiples across AI-compute stocks.<\/p>\n
Intel closed at $96.69 a share on August 18.<\/p>\n
Related: Billionaire Bill Ackman doubles down on these stocks in Q2<\/p>\n
#Veteran #fund #manager #rethinks #Intel #stock #target<\/p>\n","protected":false},"excerpt":{"rendered":"
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