Intel's third-quarter earnings report which is due on Thursday has piqued interest among traders who anticipate an unusual volatility in the company's stock post-report. Experts anticipate a nearly 10% fluctuation in either direction following this week's earnings report. This would mean that based on Monday's closing price, Intel's shares could hit a high of about $42, a peak not seen since April 2024, or a fall to just above $32, marking a 10% decline.
The company's stock has demonstrated considerable movement in the past, having moved an average of 6.5% post its last four earnings reports, showcasing a pattern of consistent volatility. One such significant drop was witnessed in July as the company reported an unexpected loss, causing stock to dip more than 8%.
However, Intel's struggling foundry business, bolstered by investors' optimism about the government's stake in the company, has allowed the stock to rebound. Anticipation of a major post-earnings movement reflects the stock's significant spike and the uncertainty revolving around the effects of recent investments on the company's near-term operations.
The current report marks Intel's first since the federals took an approximately 10% stake in the tech giant. The company has also benefitted from additional investments from Japanese venture capital firm SoftBank and AI chip giant Nvidia.
Yet, despite the positive inflow of investment, analysts express skepticism about the maintenance of the current stock momentum. Out of seven tracked ratings, five have assigned Intel a "Hold" rating, while two suggest selling. The average price target lands at around $30.60 implying a nearly 20% downside from Monday's closing level.