The world’s second-largest chipmaker, Intel Corporation (NASDAQ:INTC), is a shell of its former self. Despite worldwide semiconductor scarcity, which has aided competitor chipmakers, Intel is losing money, with net profits down 21% to $4.6 billion from the previous year.
Intel was the largest chipmaker in the world until 2021 when Samsung overtook it. Despite the fact that Samsung’s primary business is memory chips, which is a separate market from Intel’s microprocessors. These are symptoms of Intel’s collapse.
Intel stock technical analysis
Source – TradingView
When you look at Intel’s stock chart, long and short-term trends are both negative. It is preferable to refrain from purchasing stocks that are experiencing a downward trend. In addition, INTC is a poor performer in the general market when compared to the yearly performance of all stocks. To put things into perspective, 68 percent of all stocks are performing better than INTC.
Additionally, INTC is currently trading around the bottom of its 52-week range, which is a negative sign. So it is okay to say that INTC is amongst the companies that are trailing the market indexes; this is because the S&P 500 Index is trading towards the top of its 52-week range.
From the technical analysis, INTC is displaying a bear flag design right now. This happens when prices pull back somewhat after a dramatic downward advance. This indicates that Intel stock provides a fantastic opportunity to short sellers.
What next for Intel?
Intel was once the unchallenged microprocessor king. Many firms produced computers, although these were essentially just brand names. The strength of the machines was determined by whether or not they had an “Intel inside.” However, those times are well behind us, and serious chipmaker companies like Qualcomm and Nvidia have emerged, and they are giving Intel a good run for their money.