Intel (INTC) is a trader’s dream. The stock found support at $20.00 since last summer 2024. INTC rallied near $30 on exceptionally high trading volume. Speculators bet on rumors that did not materialize.
Markets circulated rumors of Intel selling some or all of its business to Broadcom (AVGO) and Taiwan Semiconductor (TSM). When nothing happened, INTC rose on bets that the firm secured production orders. Fundamentally, Intel has too much debt. Its manufacturing plants will take several quarters before they are online.
In the PC market, Intel’s Core Ultra chip is not revolutionary. However, the second-generation graphics card should take Nvidia’s (NVDA) lost budget market. AMD (AMD) also faces some competition from Intel should consumers pick budget GPU products.
On Wednesday, AMD announced competitive pricing for its RX 9000 series of GPU. The card has strong rasterization performance. This is a computing performance measure that does not rely on AI-generated frames.
Risks
AMD stock has yet to turn around from its downtrend. The stock attracted strong buying below $100. Similarly, Nvidia (NVDA) pulled back quickly from $140, closing at $117.30 on March 5. Markets are growing increasingly concerned that the company will report a slowdown in AI server sales.
