Intel may be interested in acquiring GlobalFoundries
Whilst we are waiting for Intel to publish its quarterly results on 22 July, US newspaper the Wall Street Journal has published reports that the company, chaired by Pat Gelsinger, may be interested in acquiring GlobalFoundries for a value close to 30,000 million dollars.
GlobalFoundries is currently owned by Mubala Investment Co, of the Government of Abu Dhabi, although like Intel, it is headquartered in the Californian town of Santa Clara.
GlobalFoundries is dedicated to the manufacture of high-volume integrated circuits for semiconductor companies such as AMD, Broadcom or Qualcomm. Therefore, with this potential acquisition, Intel could deal a blow to its competitors and increase chip production in an environment where, due to the semiconductor crisis, demand is at record levels. Thus, with this potential acquisition Intel could experience a strong increase in its future results.
Technically speaking this company is being significantly impacted by the doubts surrounding inflation in the United States. After presenting its first quarter results in April, Intel has experienced a strong correction that has taken it back to levels not seen since January, forming a double floor in the red band near the Fibonacci retracement level of 61.8% after losing several support levels - thus, complying with the bearish divergence that we had been observing between the price and its MACD indicator.
Since that time, the price has moved in a wide lateral range between the red and green bands fighting to recover its 200-session moving average. We will have to pay close attention to next week's results, because if Intel manages to exceed market expectations, we could see a new upward momentum. Although as long as it does not overcome the upper resistance band (green), we cannot expect a long run.
Source: Admirals MetaTrader 5 – Intel Daily Chart. Date Range: 2 March 2020 – 16 July 2021. Date Captured: 16 July 2021. Past performance is not a reliable indicator for future results.
Evolution of the last 5 years:
- 2020: -16.76%
- 2019: 27.53%
- 2018: 1.67%
- 2017: 27.27%
- 2016: 5.28%
With Admirals' Invest.MT5 account, you can trade with Intel and many more stocks! Click on the banner below to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst Roberto Rojas, Freelance Contributor (hereinafter "Author") based on personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past ormodelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand therisks involved.