Intel's most recent trend suggests a bearish bias. One trading opportunity on Intel is a Bear Call Spread using a strike $47.00 short call and a strike $52.50 long call offers a potential 35.47% return on risk over the next 35 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $47.00 by expiration. The full premium credit of $1.44 would be kept by the premium seller. The risk of $4.06 would be incurred if the stock rose above the $52.50 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Intel is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Intel is bearish.
The RSI indicator is at 22.63 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Intel
US Semiconductor Firms, Huawei, and Trade War Politics
Wed, 14 Aug 2019 19:07:14 +0000
As US semiconductor companies firms adjust their supply chains to avoid tariffs, they are coming to terms with the trade restrictions on Huawei.
7 5G Stocks to Buy Now for the Future
Wed, 14 Aug 2019 18:57:16 +0000
Since I last wrote about the four best 5G stocks to buy as the trend heated up, the sector has touched new highs. The companies benefited from telecom companies rolling out 5G wireless. That trend is not only heating up, but is accelerating. AT&T (NYSE:T) will offer a fixed-wireless-access solution later this year, letting customers get 5G internet at home. Beating AT&T in the 5G race is Verizon (NYSE:VZ), which officially became the first major U.S. carrier to offer 5G cell service. * 15 Growth Stocks to Buy for the Long Haul Verizon's victory puts pressure on telecom firms to accelerate their investments in the 5G buildout — or risk falling behind.Here are seven 5G stocks to help you build investments for the future as the rest of the sector keeps heating up.InvestorPlace – Stock Market News, Stock Advice & Trading Tips 5G Stock to Buy: Ciena Corporation (CIEN)Source: Shutterstock Ciena Corporation (NYSE:CIEN) stock rebounded from near-$33 lows in May after reporting second-quarter results June 6. The company reported revenue growing by 18.5% to $865 million. CIEN stock's adjusted earnings per share was 48 cents. Although the company faced tougher year-over-year comparisons, investors bid the stock to yearly highs above $46. In the last few quarters, the company reported a growth rate a few points above the long-term average of 6%-8%. Beyond this year, growth will revert to that 6%-8% range. And EPS growth of 20% a year is sustainable.Ciena acquired TeraXion for $32 million in 2016, gaining control of its high-speed photonics components, which have enabled Ciena to unroll optical chipsets. This move also gave CIEN the execution capability around TeraXion's electro-optics portion of the drivetrain as well as the company's silicon photonics.The rollout of 5G had a positive impact on the CIEN stock's most-recent quarter. And Ciena is highly engaged with its customers, especially at the optical project level. With that level of involvement with the largest tier one companies in North America, expect revenue to grow extremely well for the foreseeable future.Assuming a reasonable five-year compound annual growth rate of 7.1%, CIEN stock has an upside of over 10%. Cisco Systems (CSCO)Source: Shutterstock Cisco Systems (NASDAQ:CSCO) stock's near-term growth will come from being the world's largest secure domain name system platform, though the data center is another source of core growth. Cisco has around 35 data centers that are growing monthly, as the company expands its cloud. It has 100 million daily users on its platform, yet the company wants to be a bigger player in 5G in the future.On July 9, Cisco announced that it would buy optical component maker Acacia Communications (NASDAQ:ACIA) for $2.84 billion. In doing so, the telecom equipment supplier will widen its addressable market in the 5G space. And because service providers will put upgrading to 5G on their roadmap, CSCO will have to upgrade its optical components, too. As global internet traffic triples into 2022, Cisco will have a way to sell the hardware customers need to support all that data movement. * 7 Safe Dividend Stocks for Investors to Buy Right Now Acquiring Acacia gives Cisco the needed expertise in metro, long-haul and undersea data movement. Previously, the company's optical portfolio covered only short-range data center connections.CSCO's integration of Acacia strengthens its positioning for 5G in the future. Acacia already makes many of the optical interconnect modules in Cisco's equipment. But in the future, the demand for high-speed interconnect will increase rapidly. Nokia (NOK)Source: Shutterstock Nokia (NYSE:NOK) stock broke out of the $5 trading range when it reported fiscal second-quarter results that beat consensus estimates. The company benefited from new 5G deal wins in the quarter. Helped by improving product competitiveness, the company now has an impressive 42 commercial 5G deals and it is operational in nine live 5G networks. With the 5G rollout starting, Nokia recognized 5G revenue in the second quarter. Investors should expect that revenue recognition continuing to build in the second half of this year.Nokia is well-positioned to be a 5G player in the future. As Nokia sells 5G radio to customers, it is also selling other Nokia products. Not only that, but NOK is building its 5G business by converting all of its 4G LTE customers — it has over 300 commercial 4G customers who need help transitioning to 5G over the next 10-20 years.Investors who gave up on NOK stock would have missed the stock rallying from $5 to nearly $5.80. In the last week, the stock traded down to the $5.20 range, creating an entry point. At a forward price-to-earnings ratio of 13, Nokia is not valued as a strong 5G player for the future. Markets are making a mistake ignoring this company's strong prospects.As many countries move quickly to deploy 5G, management may raise its guidance. Now, operators expect it will take 4-5 years after the initial rollout to get 5G deployed to 75% of their customers. That suggests Nokia's 5G growth acceleration is still in its early stages.It may also be a dividend discount: the multi-stage model suggests that Nokia stock is undervalued by 20%. NXP Semiconductors (NXPI)Source: Shutterstock NXP Semiconductors (NASDAQ:NXPI) has pivoted its business towards the automotive and 5G market over the last few years. Strong 5G deployment in the last few quarters assures the company's positioning in the space. Its second quarter, posted July 30, met consensus estimates. This is due partly to the benefit of a large mobile customer, but the higher revenue from the customer also led to lower deployment in the current Q3. To adjust for the uncertainties, NXPI lowered its Q3 revenue guidance to $2.21 billion-$2.27 billion. This is below the $2.35 billion estimated revenue.NXPI stock fell to as low as $96.11 by Aug. 5, only to recover somewhat when it closed recently at around $100. Management is bullish on the outlook for 5G but is assessing the potential near-term slowdown in the industry. With investor expectations lowered, investors have a chance to buy NXPI stock at a 15 times P/E and 11.3 times forward earnings. In doing so, shareholders are positioning themselves for the next wave of 5G spending. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Currently, NXP Semiconductors is benefiting from the growth in multi-input and multi-output (MIMO) deployment, where customers are expanding their capacity associated with their installed infrastructure. In the future, customers will move to 5G deployments. And from there, they may upgrade that capacity through software deployments to facilitate 5G. So indirectly, MIMO is driving revenue higher in the short-term. And as 5G ramps up more strongly into 2020, investors should get rewarded within a year. T-Mobile (TMUS)Source: Shutterstock In the telecom carrier space, T-Mobile (NASDAQ:TMUS) stock is creating a bigger and bolder competitor through its Sprint (NASDAQ:S) acquisition. Odds of the merger improved after the U.S. Department of Justice gave the firms clearance for the deal. But first, Sprint must divest its pre-paid business and also sell its 800 MHz spectrum license.While T-Mobile expects to deliver $43 billion in synergies from the deal, the 5G efficiencies from the merger will interest investors most. Looking into the future, T-Mobile is committed to covering 97% of the U.S. population with 5G in three years. In six years, 99% of the population will get 5G coverage. This aggressive timeline is possible because T-Mobile will leverage its 5G network.Currently, T-Mobile is deploying a 600 MHz and millimeter wave spectrum, and the former will become the foundation for its nation-wide 5G network. Once 5G smartphones are available, the company will launch 5G on 600 MHz later this year.T-Mobile's growth will also come from its broadband business. It's goal is to reach 9.5 million in-home broadband subscribers by 2024. This complements the cost synergies, with $4 billion coming from the network division, $1 billion from sales, services and marketing, and $1 billion from the back office. With consistent customer growth and higher efficiencies ahead, it is no wonder that TMUS stock is in an uptrend in 2019. Verizon Communications (VZ)Source: Shutterstock Verizon, whose shares also offer a dividend yielding 4.3% based on recent stock prices near $56, is another 5G stock to buy for the future. Its focus on the fiber deployment gives it this edge. VZ stock now has fiber in 60 cities — and is growing at 1,400 route miles per month.Verizon's capital expenditures will support the buildout of its 5G Ultra Wideband network. For the full year 2019, capital expenditure will be in the range of $17 billion-$18 billion.Verizon has launched 5G in nine markets and aims to be in 30 within the full-year period. More impressive is the speed that VZ's 5G Mobility offers now. Handsets may now run at 1.3-1.5 gig and average up to 2 gigs. Offering speeds that are significantly faster than 4G will encourage customers to upgrade.After VZ stock topped $61 in April and is down 9.4% from there, markets are not expecting much revenue growth from 5G. Still, analysts who cover VZ stock have a $61.67 price target. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates Despite the conservative expectations investors have for Verizon, 2020 will be an important year for its 5G growth. 5G Home is limited to four markets right now but will continue to expand. As the company rolls out 5G Home customer premise (CP) equipment, it will see a positive contribution to revenue in 2021. Intel Corporation (INTC)Source: Shutterstock Intel Corporation (NASDAQ:INTC) is broadening its business beyond PC central processing unit chips. It believes its network infrastructure business will benefit from the positive future for 5G, so it is investing in networks. Already, this business grew 40% since 2014 from just over $1 billion in revenue to over $4 billion last year. INTC stock is hardly trading like a 5G growth play: The stock is valued at just around 10.8 times earnings.The global rollout of 5G is driving demand for "network cloudification." Intel has opportunity in the core network and at the edge. And Intel's 10 nm Snow Ridge system on a chip technology will power 5G-base stations early next year. Already, the company secured two large telecom equipment manufacturers with this architecture. By 2022, Intel forecasts having a 40% market share.During its second quarter, Intel decided to get out of the 5G smartphone modem business. It sold the unit to Apple (NASDAQ:AAPL). This is a critical turning point for Intel because the chip giant may turn its attention towards 5G networking instead.In the near-term, growth from the cloud business will be slow and in the single digits as customers begin transitioning to 5G. Later this year and in 2020, Intel expects its cloud business to grow at a faster pace. Gross margin will fall slightly and will bottom at 57% in 2021. And while a gross margin in the 60% range next year is driven by the 10 nm chip refresh, the 5G ramp-up will help its network business.As of this writing, Chris Lau was long NXPI and NOK. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post 7 5G Stocks to Buy Now for the Future appeared first on InvestorPlace.
Beaten-down Nvidia is diligently preparing to pounce on its rivals
Wed, 14 Aug 2019 18:57:00 +0000
Nvidia’s stock went from unstoppable to nearly uninvestable in the matter of a few weeks last year and has not recovered. The sudden drop in Nvidia’s (NVDA) stock price and a competitive ecosystem that’s hard to understand are two reasons the chipmaker has scared away growth investors, who have opted for momentum bets such as cloud-software companies. The fact that semiconductor companies are cyclical, and mired in the U.S.-China trade war, has further overshadowed Nvidia’s growth potential.
The memory game: Chip companies giving mixed signals about a rebound
Wed, 14 Aug 2019 18:27:00 +0000
Memory stores what has happened in the past, but can’t tell you what will happen in the future. It seems the same is true of memory companies.
AMD Stock’s New Products Mean Even More Market Share
Wed, 14 Aug 2019 16:55:51 +0000
There's no question at this point that Advanced Micro Devices (NASDAQ:AMD) has executed an impressive transformation. The question is to what extent that transformation is priced into Advanced Micro Devices stock. The AMD stock price currently sits at about 30x 2020 consensus earnings per share — a big multiple for the chip space.Source: Shutterstock But that multiple seems worth paying for one key reason: AMD has huge amounts of market share to take. With each passing quarter, its competitive position against long-time rival Intel (NASDAQ:INTC) gets stronger and stronger.Recent news only supports the case, but the AMD stock price has still mostly moved sideways. Resistance around $34 has held after the stock touched a 13-year high last month. At some point — and likely some point soon — that resistance will give way. And Advanced Micro Devices stock, which traded at $2 less than four years ago, will resume its upward march.InvestorPlace – Stock Market News, Stock Advice & Trading Tips The AMD Stock Price Soars — Kind OfAMD's Ryzen line of central processing units and its EPYC data center processors have made the company a legitimate competitor to Intel. Radeon graphics processing units have allowed the company to battle Nvidia (NASDAQ:NVDA) in that key market. * 15 Growth Stocks to Buy for the Long Haul Again, these products have been transformative. Just a few years ago, AMD served mostly as a lower-cost option for PC manufacturers. It's now a real competitor to two of the most innovative chipmakers out there.And its improvements are continuing. The AMD stock price jumped 16% on Thursday after more good news on the competitive front. In announcing its EPYC Rome server CPUs, AMD announced that it had acquired Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Twitter (NYSE:TWTR) as data center customers.Wins with two of the internet's biggest companies obviously is huge for Advanced Micro Devices. It's even more so given that the company almost certainly poached those customers from Intel. And it may be just the beginning.As Barron's noted last week, respected tech website AnandTech gave the Rome a rave review. The site's Johan De Gelas wrote:So has AMD done the unthinkable? Beaten Intel by such a large margin that there is no contest? For now, based on our preliminary testing, that is the case. The launch of AMD's second generation EPYC processors is nothing short of historic, beating the competition by a large margin in almost every metric: performance, performance per watt and performance per dollar.Analysts in the industry have stated that AMD expects to double their share in the server market by Q2 2020, and there is every reason to believe that AMD will succeed. The AMD EPYC is an extremely attractive server platform with an unbeatable performance per dollar ratio.With those kind of reviews, AMD may have many more wins ahead — particularly since Intel's competing chip won't be available until next year. What's Wrong with AMD Stock?Even with that win, and the 16% one-day gain, however, the AMD stock price has mostly stalled out. And there are three potential concerns here.First, its technicals don't look great, for investors who follow the charts. Resistance keeps holding around $34. Indeed, I argued ahead of earnings that AMD stock could bust through that ceiling; it hasn't done so yet. And as I noted last month, this is a stock that on occasion has fallen sharply and swiftly after hitting resistance in the past.Second, as noted, valuation is pricing in quite a bit of strength as is. We've seen with the plunge in NVDA stock what can happen when a chip stock gets overvalued. This remains a cyclical industry, and yet Advanced Micro Devices stock isn't quite priced as such.Finally, AMD is taking market share — but there are questions about those markets. PCs still drive a decent chunk of sales. Intel and Nvidia highlighted first-half slowdowns in data center demand. Both companies expect an acceleration in the second half — and AMD management sounded confident on its second-quarter conference call — but a weaker-than-expected market could dim investor enthusiasm toward AMD stock. Risks Worth TakingEven with those risks in mind, however, AMD stock looks attractive back at $30. And there's one broad reason why. AMD, even after the big gains of late, still has a market capitalization of about $33 billion. Intel, on the other hand, still is worth over $200 billion.It's too simplistic to say that AMD's market share gains mean that it can take value from Intel. After all, both companies can move higher (or lower) depending on how overall end markets respond. And Intel has operations in areas like NAND flash, where AMD is not a competitor.Still, from a very broad standpoint, the argument is simple: There's a lot of Intel market share that AMD can take. And that means there's a market opportunity worth multiples of the current AMD market capitalization. With Advanced Micro Devices still executing, and clearly set to take more share, there's more value to be added — and more gains for AMD stock.As of this writing, Vince Martin did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post AMD Stock's New Products Mean Even More Market Share appeared first on InvestorPlace.
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