Intel (INTC) has been the semiconductor sector’s classic underdog for years—while the broader market, including heavyweights tracked by the VanEck Semiconductor ETF (SMH), surged to new all-time highs, Intel’s peak remains stuck at $68 from early 2020. This lagging performance has cost investors dearly, missing out on the explosive gains seen in more dynamic chipmakers. But here’s the twist: Intel might be gearing up for a comeback that savvy investors should not overlook.
On a recent trading day, Intel jumped 6.4%, marking one of its largest single-session gains this year. While such a sharp spike can make chasing the stock risky in the short term, the technical signals forming behind the scenes suggest a more sustained move could be underway. Intel is shaping a textbook cup-and-handle pattern—a bullish setup that often precedes a breakout. If this pattern plays out, the stock could target the $28 range, aligning with its February highs.
What makes this setup particularly compelling is the behavior of Intel’s moving averages. The 50-day moving average (DMA) has begun to curl upward and is approaching the 200-DMA. A crossover of the 50-DMA above the 200-DMA, known as a “golden cross,” historically signals a bullish trend reversal. Intel last experienced this in May 2023, which coincided with a notable rally. Investors should watch closely for a repeat, as it could ignite further momentum.
Adding to the bullish case, Intel is nearing a critical downtrend line from its 2024 highs. Breaking decisively above this resistance would signal a fundamental shift in the stock’s character, potentially ushering in a new phase of upward momentum. The next resistance target lies between $29 and $30, a zone that previously acted as a significant barrier and corresponds with the 38.2% Fibonacci retracement of Intel’s prior decline.
From an investor’s perspective, this technical convergence—cup-and-handle formation, moving average crossover potential, and approaching downtrend resistance—creates a setup ripe for a breakout. While Intel hasn’t been a sector leader recently, the stock could be on the cusp of catching up with its semiconductor peers.
Here’s the unique angle Extreme Investor Network brings: Intel’s potential resurgence isn’t just about technicals. The company is aggressively pivoting toward next-generation technologies like artificial intelligence (AI) chips and advanced manufacturing processes. According to a recent report by IC Insights, the global semiconductor market is expected to grow at a CAGR of 7.5% through 2028, driven largely by AI and data center demand. Intel’s renewed focus on these high-growth areas could provide the fundamental fuel to sustain any technical breakout.
For advisors and investors, the actionable insight is clear: don’t write off Intel just because it has underperformed. Instead, watch for confirmation of the technical breakout and consider adding Intel on strength, not weakness. This approach mitigates the risk of chasing a volatile stock while positioning portfolios to benefit from a potential turnaround.
Moreover, diversification within the semiconductor space remains crucial. While names like NVIDIA and AMD have dominated headlines, Intel’s improving technical and fundamental outlook suggests it could offer attractive risk/reward dynamics as part of a balanced chip sector allocation.
What’s next? Keep a close eye on Intel’s earnings reports and guidance for signs of accelerating growth in AI-related chip sales. Also, monitor the moving averages and the downtrend line breakout for technical confirmation. If Intel breaks above $30 with volume, it could trigger a more extended rally, potentially redefining the semiconductor landscape.
In summary, Intel’s laggard status might finally be shifting. The stock’s technical setup, combined with strategic business pivots and a booming semiconductor market, positions it as a compelling “catch-up” play. Investors who act prudently now could capitalize on a significant sector rotation that others might miss.
Stay tuned with Extreme Investor Network for continuous updates on this developing story and other high-impact investment opportunities.
Source: Intel is forming a bunch of bullish chart patterns like the cup-and-handle and golden cross