Intel Corporation Stock Poised To Hit A New High

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Intel has moved up more than 10% since the Brexit saga, which hit the capital markets last month. With help from one or more positive developments, the chip maker has been able to gain investors’ confidence. Based on all these developments, TCC expects the stock to hit a new 52-week high soon.

Several positive catalysts for Intel

Among all the developments, reports that it won a contract to supply chips for the iPhone 7 have helped greatly. Also many analysts added the chip maker to their bullish books, helping it add to its gain.

Gaurav Iyer of Profit Confidential believes the chip maker is now in the same position as it was in 2001. Iyer is very optimistic on the company and believes that cloud computing is the next big thing and that the chip giant is poised well to benefit from this. Five years from now, Intel could grow by 15% per year with help from the growth of smartphones and the internet, says Iyer. If this turns into a reality, then the stock may breach $57 in the next two years.

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Bullish recommendations from numerous brokerage houses could act as positive catalysts going forward. Popular research firms like RBC, Mizohu and Argus have raised their price targets and ratings on the chip maker. The current average price target for Intel stands at $36.06, which is above its 52-week high. Thus, we can expect it to hit a new high very soon.

Look out for major events

For Intel, events like its quarterly reports, August IDF and Investor Day are the big events to watch. History indicates that major technological announcements are made before IDF so that the company can provide more details on it there, according to Seeking Alpha.

In June 2015, the chip maker announced the 3D XPoint partnership with Micron and picked it up later at IDF. For this year, Intel’s major announcement is related to a partnership with BMW and Mobileye to introduce autonomous driving by 2021. It is expected that the chip maker will talk more about this at IDF. If the talks go well, this could be another catalyst for its stock, both in the short term and long term.

On Friday, Intel shares closed up 2.41% at $34. Year to date, the stock is down almost 3%, while in the last year, it is up almost 17%. The stock has a 52-week high of $35.59 and a 52-week low of $24.87.