Intel (INTC) stock continued to trend higher in pre-market trading, building on a big 11.7% surge on Wednesday that pushed the shares to their highest close in about four years. With the earnings report due today, many investors now see the results as a key trigger for Intel’s next move.
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Wall Street analysts expect Intel to report earnings per share of $0.08, down 38.5% from the year-ago quarter. Meanwhile, revenues are expected to decrease by 6% from the year-ago quarter to $13.40 billion, according to data from the TipRanks Forecast page.
Options Activity Signals Rising Retail Interest
One clear sign of growing interest showed up in the options market. By shortly after 11 a.m. on Wednesday, call option trading had already reached levels close to Intel’s full-day average over the past 10 sessions.
Call options are often used by retail traders to bet on short-term gains. The sharp pickup in activity suggests many traders are positioning for a strong move following Q4 earnings.
Online chatter supports that view. Around midday, Intel ranked among the top five most mentioned stocks on Reddit’s WallStreetBets forum over the past 24 hours, pointing to rising attention from individual investors.
According to TipRanks’ Options tool, options traders are expecting about a 9.31% move in either direction in Intel stock in reaction to Q4 results.
Analysts Share Mixed Views Ahead of Earnings
Wall Street analysts have also been active ahead of the report. RBC Capital Markets maintained a Neutral rating on Intel and said it expects a slight earnings beat, with guidance largely in line with expectations.
Heading into earnings, Bernstein analyst Stacy Rasgon raised his price target on Intel to $36 from $35 but kept a Market Perform rating. The 5-star analyst said sentiment around Intel has improved due to progress on its 18A process, better server demand, and support from the U.S. administration. However, he remains cautious, citing ongoing market share losses, weak PC demand, and the need for higher spending to scale the foundry business.
On the brighter side, Seaport Global Securities analyst Jay Goldberg upgraded Intel stock from Neutral to Buy and set a $65 price target, pointing to stronger signals in Intel’s PC business and early progress in its foundry efforts.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on eight Buys, 19 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. The average INTC price target of $44.29 per share implies 18.37% downside risk.
