Trading Intel on New AI Chips & Manufacturing Plants

January 02, 2024 12:45

Chipmaker Intel is undergoing a huge transformation in its business model. It is building the first U.S.-based chip manufacturing plant, with another one in Israel - with help from the U.S. and Israeli governments, while also launching a new range of AI products.  

However, this is at a time when computer sales have suffered eight quarters of decline and increased competition from Nvidia and AMD. Learn more about Intel's business plans for 2024 and what analysts are forecasting for the stock.

Stock: Intel Corp.
Symbol for Invest.MT5 Account: INTC
Date of Idea: 2 January 2024
Time Line: 1 - 6 months
Entry Level: $51.50
Target Level: $68.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Intel's 2024 Business Plans 

Intel is entering a very busy period in its business model transformation. Late last year, Intel announced plans to build a new U.S.-based chip manufacturing plant and is the prime candidate for government funding of chips for the U.S. military. While a formal deal has not been confirmed, Intel has been a big supporter of President Joe Biden's $53 billion Chips and Science Act to reduce reliance on overseas technology. In 2021, Intel invested $20 billion in two Arizona-based chip factories.  

Israel's government also announced plans to give a $3.2 billion grant for a new $25 billion chip factor in southern Israel. While less than 10% of Intel's workforce is based in Israel, the focus has been to build factories across three continents to compete with its rivals.  

While Intel has invested heavily in new chip factories, it remains to be seen if any orders justify the cost. The company did announce there have been orders for chips from its Arizona factories which could grow if it becomes the only manufacturer of advanced chips in the U.S. 

It also announced a range of new AI products including its new Core Ultra processors for ultrathin laptops. However, computer market sales have been on a decline and are not expected to recover anytime soon. There is also a lot of competition in this field from AMD and Apple. Investors have been more interested in its new artificial intelligence chips called Gaudi3, for generative AI software launching later this year.  

While there are some interesting plans for Intel, it is worthwhile remembering that Intel has struggled in recent years. It was only in 2022, that the company posted its biggest-ever quarterly loss due to a slump in PC demand. Sales were down 36% and gross profit margin down 38%. Its next earnings report on 25 January 2024 becomes an important measure of Intel's plans going forward and the mixed analysts' ratings below show the uncertainty surrounding the stock. 

Intel Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an Intel stock forecast in the past 3 months, there are currently 6 buy, 20 hold and 3 sell ratings on the stock. The highest price level for an Intel stock forecast is $68.00 with the lowest price target at $17.00. 

The average price target for an Intel stock forecast is $41.20.

Source: TipRanks, 2 January 2024


An Example Trading Idea for the Intel Stock Price

An example trading idea for the Intel share price could be as follows:  

  • Buy the stock on a break above $51.50 to allow for volatility. 
  • Target just below the highest analyst price target of $68.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Intel shares:  
    • If target is reached = $165.00 potential profit [($68.00 - $51.50) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the uncertainty around Intel's future plans and investments.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Intel stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Intel Stock in 4 Steps  

With Admirals, you can buy shares in companies like Intel with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Intel. Monthly. Date: Jan 2014 to Jan 2024, captured on 2 Jan 2024. Past performance is not a reliable indicator of future results or future performance.


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Do You See the Intel Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Intel share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.