Intel Corporation Stock Well-Positioned To Hit $35 Soon

Intel shares, after dropping to as low as $29.50 on May 19, have gained 9% in the past couple of weeks. The chip maker gained most of this value because of the rumors about what Apple could say on Monday at WWDC.

Intel stock shaping up for a recovery

According to the rumors, the iPhone 7 versions that will run on AT&T’s network will have chips from Intel. However, it is not known as of now if those rumors are true or not. Intel stock has reclaimed all three key support benchmarks: its 20-, 50- and 100-day moving averages, after which it is in a sustained uptrend, says The Street.

Based on the assumption that the shares will break their resistance at $32.13, it seems that they won’t stop rising before reaching $35 after gaining 10%. On Friday, the stock closed 0.31% higher at $32.04. Friday was a brutal day for the entire market with a handful of tech stocks closing in positive territory, and Intel was one of them. The stock now is shaping up for a nice second-half recovery, the report says.

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After dropping to around $27 in February, Intel shares have risen by almost 20%. Currently the stock is very close to its March high of $32.75, where it peaked just before the first quarter earnings report.

Decent technicals and fundamentals

Intel’s mobile revenue will get a big boost from the Apple deal (if true), but no such high assumptions are reflected by Intel stock. Despite the recent 9% gain over the past month, the stock is priced at just 13 times this year’s earnings, which is four points below the S&P 500.

In other words, it can be said that along with the fundamentals, the technicals are improving. The recent rise above the 20-day average at $31.09 further affirms this. A gain of around 10% to $35 can be expected as the stock breaches the resistance at around $32.10.

Intel is expected to report its earnings next month, so we may not have to wait much to witness those gains. Overall, 16 analysts have a Buy rating on the chip maker, while nine rate it Outperform and 15 recommend it as a Hold. The average price target on the stock is $35.49. The highest price target is $42, while the lowest is $26.

At 11:18 a.m. Eastern, Intel shares were up 1.42% at $32.49. Year to date, the stock is down by over 7%, while in the last year, it is up almost 4%. The stock has a 52-week high of $35.59 and a 52-week low of $24.87.