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Another Intel Stock Analyst Calls Out AMD Threat

It's the second time this week an analyst said AMD could hurt Intel

Jun 20, 2018 at 9:38 AM
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Blue chip Intel Corporation (NASDAQ:INTC) is trading higher today, rising 0.4% to $53.16 so far, even though it's again being hit with negative analyst attention. For starters, Cowen just trimmed its price target to $54 from $55. But the more noteworthy attention likely came from Morgan Stanley, which believes chip rival Advanced Micro Devices (AMD) could benefit from Intel's manufacturing issues -- echoing recent concerns from Northland Capital Markets.

Still, INTC shares have performed very well during the past year, sporting a year-over-year gain of 49% coming into today. They're also now seeing familiar support from the 80-day moving average. The security opened below this important trendline yesterday, only to climb back above it by the close. However, should Intel indeed experience difficulties going forward, it would be exposed to potentially more bearish attention.

Specifically, 17 of the 28 analysts tracking the Dow component say to buy it. Moreover, the average 12-month price target is pricing in substantial upside of 11.5%, sitting up at $59.13. This also represents multi-year-high territory for INTC stock, which topped out at $57.60 back on June 4.

Another potential headwind could come from short sellers borrowing more shares. Short interest on Intel jumped 9.7% during the past two reporting periods -- a sudden uptick following months of decline. As it stands now, the nearly 84 million shares controlled by short sellers would take roughly four sessions to buy back, based on average daily volumes.
 

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