MMR

Intel Stock Hoping to Avoid Another Earnings Scare

INTC gapped lower by 26.1% after its earnings report in August

Managing Editor
Oct 30, 2024 at 2:20 PM
facebook X logo linkedin


Intel Corp (NASDAQ:INTC) has fallen from grace so suddenly that semiconductor suitors have been circling. Last seen trading at $22.46, the chipmaker and former tech titan reports third-quarter earnings after the market closes tomorrow, Oct. 31. To avoid a Halloween scare, INTC must show serious inroads with artificial intelligence (AI) to buck a dire post-earnings trend.

Intel stock has developed a history recently of sharp post-earnings reactions to the downside. The shares gapped 26.1% lower in early August, and have not finished higher after earnings during any of the company's quarterly reports this year. For tomorrow's trading, the options market is pricing in a 14.8% post-earnings move, comparatively larger than the average 10.5% post-earnings move over the past two years.

INTC Stock Chart

INTC is down 55.2% in 2024, with its 80-day moving average keeping a lid on recent consolidation around $22. Options traders are loading up on puts. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), INTC's 10-day put/call volume ratio of 1.78 ranks in 100th percentile of its annual range, indicating the rate of call buying is at 12-month highs.

Options traders looking to bet on Intel's next leg lower will have to pay up, though. INTC's 30-day at-the-money implied volatility of 68.6% ranks in the 100th annual percentile, indicating near-term put options are pricing in higher volatility expectations than their call counterparts at the moment.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)