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A Look at Intel’s Stock Performance

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Intel stock outperforms the market

Earlier in this series, we saw that analysts became bullish on Intel (INTC) in 4Q17 as momentum picked up in the data center market. This bullishness was seen in Intel stock, which rose 20% between October and December 2017. 

Even if we look at the momentum of the three months that ended on March 8, 2018, Intel stock outperformed the industry and the market.

Intel stock rose 10.6% YTD (year-to-date), outperforming the S&P 500 Index (SPY), which rose 2.7%. However, it underperformed the VanEck Vectors Semiconductor ETF (SMH), which rose 12.3%, and its peers Advanced Micro Devices (AMD) and NVIDIA (NVDA), which rose 16.4% and 24.7%, respectively.

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Intel stock is currently trading near its 18-year high at over $50. The highest the stock has ever traded was $74.88 in June 2000, when the industry was going through a technology shift to PCs (personal computer). At the time, even AMD reached its all-time high of over $46. However, this growth faded, and Intel and AMD stock fell by close to half by the end of 2000.

We’re once again at the next technology shift, and chip stocks have likely just started on the growth path. This time, Intel’s fundamentals and market share are stronger, but NVIDIA has fundamentals and a technology lead. Although they’re bullish, analysts don’t expect Intel to reach its all-time high—but they do expect it to reach $60.

Volatility

Looking at Intel’s stock price movements, we can see that the stock is more volatile than the market but more stable than its peers, which are outperforming the market as well as the industry. Intel has a beta of 1.4, which is higher than AMD’s and NVIDIA’s betas of 1.55 and 1.77, respectively.

Beta is a measure of volatility, where the market’s volatility is measured as 1. A beta of lower than 1 is less volatile, and a beta of higher than 1 is more volatile.

Continue reading to understand traders’ sentiments for Intel via its price movements.

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