Intel Corp is one of the world’s largest manufacturers of electronic devices and computer components, including microprocessors and system logic sets (chipsets). The headquarters is located in Santa Clara, California, USA. The company supplies its processors to such computer systems manufacturers as Apple, Lenovo, HP and Dell.
A week ago, Intel published its statements for the first quarter of 2019. The company’s performance exceeded the expectations of experts, but despite this, the price of the company’s shares fell by almost 9%.
Such an effect on the market was made by the negative forecast values of the company, which it expects to receive in 2019. At the moment, Intel expects that due to the decline in sales of chips in data centers, its total income will decrease.
According to many analysts, such a fall in prices amid ambiguous expectations does not correspond to the real state of affairs of the company. Therefore, the correction now observed on this paper is most likely a temporary phenomenon. Consequently, this is a great chance for investors to buy such shares at a lower price.
In addition, the company continues to conduct a buyback program of its own companies. This is an important indicator, which means that the company is completely confident in its stability and does not require additional funding. Such actions by the issuer always have a positive effect on the stock price.
Even from a simple theory it follows: the smaller the product on the market, the more expensive it is. When analyzing the graph of the price of shares of Intel, we can observe that the price has now come to the diagonal level of support level. Moreover, with such a sharp decline, a serious gap has formed (price gap). Based on the fundamentals of those. analysis, in such a situation, the price almost always makes a correctional movement in the direction of the gap. Therefore, such a purchase can be considered for midterm and short-term positions.