Intel Stock Dips After Pentagon Reportedly Pulls Plans

INTC still hasn't recovered from its January post-earnings bear gap

Deputy Editor
Mar 13, 2024 at 11:08 AM
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Intel Corp (NASDAQ:INTC) is in the spotlight today, after Bloomberg reported the Pentagon intends to scrap plans to spend $2.5 billion on a chip grant to the company. Those familiar with the situation said it's up to the Commerce department to make up for the shortfall, as President Joe Biden signed into law a defense funding package that allotted $3.5 billion to Intel to produce defense and intelligence-related semiconductors. 

At last glance, Intel stock was down 1.1% to trade at $44.72. The stock has been choppy on the charts since its late-January post-earnings bear gap, of 12%, which has yet to be filled. Since the start of the year, the equity is down 10.8%. 

Options traders appear to be betting on a rebound, however. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), INTC's 50-day call/put volume ratio of 3.69 ranks higher than all other readings from the past year. 

There is plenty of room for optimism amongst analysts. Of the 33 analysts in coverage, 27 carry a "hold" or worse rating on Intel stock. Plus, the 12-month consensus price target of $44.59 is roughly in line with current levels. 

 

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