Could Intel (NASDAQ:INTC) go from hated to celebrated? That’s the billion-dollar question as Intel prepares to unleash a slew of quarterly data points on the market. With that, INTC stock has a chance to rise from the ashes — and you’ll regret it if you’re late to the rally.
Unlike Advanced Micro Devices (NASDAQ:AMD) stock, Intel stock is down over the past year and has a lot of catching up to do. Just maybe, 2023’s second half will be the time when a laggard becomes a leader in the chipmaking market. So, let’s see what’s in store for Intel as the company gears up for a crucial quarterly report.
Nearly Everybody Hated INTC Stock
The overall sentiment surrounding Intel can currently be described as lukewarm. Earlier this year, however, it seemed as if everybody and his uncle hated Intel.
Commentators loved to talk about how Advanced Micro Devices “ate Intel’s lunch,” meaning Intel lost market share to AMD. For the fourth quarter of 2022, the company earned a meager 10 cents per share (versus Wall Street’s call for 20 cents per share). That, along with soft first-quarter 2023 guidance and a massive dividend cut, prompted many traders to sell Intel stock.
The first quarter of 2023 was somewhat less disappointing for Intel’s shareholders. The company posted a net earnings loss after many quarters of positive income. But hey, at least there hasn’t been another recent divided reduction.
This Will Be a Big Day for Intel
As I said in the title, mark your calendar as a possible make-or-break day is coming for Intel. On July 27, Intel plans to release its results for the second quarter of 2023.
First and foremost, I expect Intel’s management to mention artificial intelligence (AI) multiple times, both in the earnings press release and in the conference call. The company has gotten involved in AI technology, so Intel’s management should brag about that.
Analysts expect Intel to report negative EPS for the quarter, so it won’t be a big shock if that occurs. There’s more upside surprise risk here than downside risk, since hardly anyone expects Intel to knock it out of the park.
Bear in mind that earlier this year, Rosenblatt analyst Hans Mosesmann wrote, “No words can portray or explain the historic collapse of Intel.” For dyed-in-the-wool contrarians or even just opportunistic traders, Intel stock has the makings of a once-hated asset with tremendous turnaround prospects.
Don’t Miss the Bus With Intel Stock
Opportunities to ride along with a zero-to-hero stock don’t come along every day. The sentiment surrounding Intel is tepid at best right now. However, that could instantly change on July 27.
If you’re reluctant, just consider trying out a small share position in INTC stock. Then at least you’ll be on the bus as it picks up more riders and, hopefully, heads for higher ground.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
