Intel Stock Forecast: Why Intel’s Stock Will Eventually Breach $70

motek 1The Intel stock forecast was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • Intel’s stock already touts a year-to-date price return of +30% but I’m still endorsing it as a buy.
  • The majority of the world is still operating under the COVID-19 pandemic protocol. The Data Center Group is still, therefore, getting a boost from work-from-home and learn-from-home tailwinds.
  • Nvidia’s Grace ARM Server CPU/GPU product is not an imminent threat to Intel’s 95% monopoly on server processors.
  • PC and mobile gamers stuck at home are also still boosting Intel’s gaming-related products. Hardcore gamers still prefer Intel-branded processors for their PC rigs.
  • Asustek is now selling its own brand of Intel Iris Xe graphics card accelerators for PC gamers. Aside from gamers, Intel’s Iris Xe GPU cards also have a tailwind from cryptocurrency miners.

Congratulations to those who heeded my December 19 buy recommendation for Intel (INTC). Back then, INTC’s price was below $51. INTC’s stock price recently dipped but it’s still trading above $64. Intel’s stock has delivered a year-to-date price return of +30.51%. I’m still endorsing it as a buy. I’m highly confident INTC can breach $70 within the next 60 days.

Intel stock forecast data
(Source: Seeking Alpha)

INTC can easily breach $70 if management reports better-than-expected Q1 numbers next month. IDC recently reported that Q1 2021 PC global shipments increased +55.2% year-over-year. Let us never forget that all the top PC builders/vendors still favor Intel’s processors over the Ryzen brand of Advanced Micro Devices (AMD). The PC business is a low-margin venture but anything that could boost Intel’s topline is still an important catalyst for INTC.

intel stock forecast data

The chart above is a very strong incentive to go long (or add more shares) on Intel’s stock. Long-term technical indicators and moving averages are also bullish for Intel stock forecast. We should heed the strong buy conclusion given in the chart below. I strongly rely on moving averages trendlines. Heed the chart below and go long on INTC as soon as possible.

intel stock forecast technical indicators
(Source: Investing.com)

Gaming Is Boosting PC Sales

Let us also take into account that Intel is now building and selling its own consumer add-in graphics accelerator cards under the Iris Xe brand. IDC said the growth in gaming and the increase in average selling prices of PC products is boosting the industry. That big 55% year-over-year growth in Q1 2021 PC shipments is likely due to the growing demand for more powerful gaming laptops and desktop PCs. Most of the world’s population are still stuck at home working or doing online learning/schooling. It is still dangerous to go out and party because of the mutating variants of the COVID-19 virus.

Intel benefits a lot when the majority of planet Earth’s population is compelled to do more PC and mobile gaming. The PC gaming hard alone was estimated to be worth $40 billion last year. The processors that go into gaming laptops and desktop computers are mostly Intel-branded. The servers that run online multi-player games usually use Intel Xeon processors.

intel stock forecast revenue
(Source: Jon Peddie Research)

Management has also persuaded Asustek (ASUUY) as its first partner to build and sell Iris Xe graphics cards to PC gamers. This can lead to the disruption of Nvidia (NVDA) and AMD’s duopoly on PC gaming accelerator cards. Going forward, Intel will also diminish Nvidia’s big lead on add-in video cards that goes into gaming computers and workstations used by engineers and CAD professionals. Statista reported that the add-in GPU cards market was worth $19.75 billion in 2019. This rich market is growing at 33.6% CAGR. The business of selling add-in GPU cards is expected to be worth $200.85 billion by 2027.

intel graphic cards
(Source: Intel’s Website)

Data Center Group Still Benefits From Pandemic Boost

My takeaway is the ongoing pandemic protocol of most countries persists as a tailwind for Intel’s data center and PC business segments. Much of the world’s employees and students are still working and/or studying from their homes. This fact should help Intel’s Data Center Group remain a consistent big profit generator. The first quarter is not the ideal purchasing cycle of most data center operators. I expect the Data Center Group to deliver a Q2 revenue of $7 billion. Management only needs to state a healthy Q2 revenue/EPS estimate next month after Q1 ER. This should boost the market appeal of INTC.

intel data center revenue
(Source: Next Platform)

Conclusion

INTC is still undervalued when compared to its semiconductor industry peers. This is grossly unfair because Intel is extremely profitable for a long time now. The surging PC market is a big tailwind for INTC. The work-from-home, the learn-from-home pandemic protocol is still boosting Intel’s Data Center Group. It’s a no-brainer that INTC will eventually breach $70 soon. Like it or not, Intel indeed has consistently produced a higher operating income margin than Nvidia or AMD.

intel stock roe
(Source: Finbox.io)

Take note that Intel’s Iris Xe discrete or add-in video cards also tout long-term tailwind from cryptocurrency miners. Nvidia’s intentional reduction of hash rates for its GeForce cards means crypto miners will eventually consider Intel Iris Xe GPU cards as worthy alternatives. The recent crazy, massive surge in Etherium and Bitcoin price tags is why crypto-mining processors and graphics cards accelerators are much in demand right now.

Lastly, my strong buy recommendation is supported by the bullish one-year forecast from I Know First. We should trust the stock-picking choices of I Know First’s AI prediction algorithm. It made us all richer for the past six years. Subscribe to I Know First’s daily algorithmic forecasts and you will eventually become a millionaire.

intel stock forecast

Past Success With Intel Stock Forecast

I Know First has been bullish on Intel’s shares in past forecasts. On our December 15, 2020 premium article, the I Know First algorithm issued a bullish Intel stock forecast. The algorithm successfully forecasted the movement of Intel’s shares on the 3 months time horizons. INTC’s shares rose by 26.39% in line with the I Know First algorithm’s forecast.

I Know First intel stock forecast for 2021
intc historical price

Here at I Know First, our AI-based stock forecast algorithm has modeled and predicted assets price movement worldwide for short-term and long-term time horizons, ranging from 3 days to a year. The database used is 100% historical data free from human-derived assumptions and is constantly evolving with newly added data and adapting to changing market situations. Today, we are producing daily forecasts for over 10,500 assets such as Nvidia stock forecast, as well as gold predictions and forex forecast, while also providing the latest Apple stock news. These forecasts generated by our quant trading tool are used by institutional clients, as well as private investors and traders to identify the best investment opportunities in the market.

To subscribe today click here.

Please note – for trading decisions use the most recent forecast.