Intel stock price upped on Monday, with the maket reacting to news that Broadcom and Nvidia are testing the capabilities of its chips for advanced AI applications. The news sent Intel (NASDAQ: INTC) up by 3.5% at the time of writing to trade at $24.62. The company’s fundamentals are further strengthened by news surrounding a potential takeover of its foundry business by semiconductor manufacturing giant, Taiwan Semiconductor Manufacturing Company (TSMC).
Multiple news sources reported on Monday that Nvidia and Broadcom have begun testing Intel’s 18A manufacturing process to assess its ability to manufacture high-end AI chips. Succesful testing could lift up Intel and bring in substantial earnings from giant tech companies, with the AI industry projected grow substantially in the next decade.
Meanwhile, a potential takeover of Intel’s foundry business is still on the cards, with TSMC reportedly consiring placing a bid. Such a bid is likely to receive the backing of US President Donald Trump, who has been vocal about securing manufacturing jobs in the US and ramping up US semiconductor manufacturing capacity.
Intel stock price has risen by 21% in the last month, and is up by 20% year-to-date. This has seen it trade above key moving averages, including the daily 20 and 50 SMA levels. Also, the stock’s Average Directional Index (ADX) is at 27, signifying a strong upside momentum.
Intel Stock Price Prediction
Intel stock price pivots at $24.30 and the momentum indicators favours the upside to continue. With the buyers in control, INTC price will likely move higher and encounter the first resistance at $24.85. Breaking above that level will strengthen the upside momentum and could test the second barrier at $25.50.
Conversely, breaking below the pivot mark will shift the momentum to the downside. The first support will likely be at $23.90. However, a stronger momentum will break below that level, invalidating the upside narrative. An extended control by the sellers could extend the downside to test the second support at $23.40.
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