Intel Stock Set for Rebound

Intel Corporation's stock has experienced a decline of over 27% this year due to concerns about its profitability in the semiconductor foundry business. Despite this, Citi analyst Christopher Danely anticipates a near-term rebound and has set an 'upside 30-day catalyst watch' on Intel shares. He maintains a Neutral rating and a $40 target price. This optimism is based on the recent increase in notebook computer shipments, which Danely believes could provide potential upside.

Intel is scheduled to report its financial results on April 25, 2024. The company's own guidance for the quarter predicts revenue between $12.2 billion to $13.2 billion with a non-GAAP profit of 13 cents a share.

In the recent trading session, Intel's stock ended at $36.31, showing a +1.74% swing from the previous day's closing price. This outperformed the S&P 500's daily loss of 1.2%. For the forthcoming earnings report, Intel is projected to report earnings of $0.13 per share, indicating a year-over-year growth of 425%. The latest estimate calls for revenue of $12.76 billion, an increase of 8.93% from the prior-year quarter.

Last week, research firm Canalys reported a 3.2% increase in global PC shipments from a year earlier, with notebook shipments 4.2% higher. This marks the second consecutive quarter of PC shipment growth following a pandemic-era demand boom.