Intel stock (NASDAQ:INTC) fell more than 2% in pre-market trading as investors decided to take profits following the stock’s strong rally. While Wall Street futures posted gains, investors locked in profits after Intel’s massive surge and grew more cautious amid high valuation expectations. Concerns over the company’s elevated capital expenditures also continued to weigh on market sentiment.
AI Demand Boosts Recovery
Intel recently announced its fastest revenue growth in 15 years, with second-quarter revenue climbing 25% year-over-year to $16.1 billion, driven by AI data center demand that powered its recovery.
CEO Lip-Bu Tan stated that AI is generating “unprecedented demand for computing power” and added that Intel is “well positioned to capture sustainable growth.” The company also increased its 2026 capital expenditure plan from $18 billion to $20 billion. Intel’s data center and AI revenue surged 59% to $6.3 billion, while foundry division revenue rose 31% to $5.8 billion.
Technical Analysis and Analyst Outlook
Despite the recent correction, Intel stock remains in a long-term upward trend. The stock has climbed 362.56% over the past 12 months, trading above its 200-day simple moving average.However, short-term momentum has weakened as shares trade below their 20-day and 50-day SMAs, pointing to ongoing short-term selling pressure. Key support is established near the $67.04 mark (200-day SMA), while key resistance stands near $92.46.Overall, the stock maintains a hold recommendation with analysts adjusting price targets across major financial institutions..
Source: Yahoo Finanzas
