Intel (INTC) stock surged in after-hours trading on Wednesday following the announcement of Lip-Bu Tan as the company’s new CEO. Tan, a former board member and seasoned executive in the semiconductor industry, succeeds interim Co-CEOs David Zinsner and Michelle Johnston Holthaus, who have led the company since Pat Gelsinger’s retirement in December. Tan will officially step into the role next Tuesday.
The leadership change comes amid growing industry speculation, including reports that Taiwan Semiconductor Manufacturing Company (TSMC) is in talks with Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) to form a joint venture to manage Intel’s foundry division, which produces chips for third-party clients.
Despite significant challenges over the past year—chiefly Intel’s struggle to gain traction in the AI chip market and ongoing restructuring efforts—Intel’s stock has been under pressure, losing more than 50% of its value. However, the announcement of Tan’s appointment sparked a 10% increase in the company’s stock price, pushing it to $22.84 in after-hours trading.
Analyzing Intel’s Chart: Key Technical Levels to Watch
Intel’s stock has largely been rangebound since its sharp decline in August of last year, which some analysts believe could be signaling a market bottom. The stock attempted a brief rally to its 200-day moving average (MA) but has since pulled back to its trading floor from the last several months.
In the wake of Wednesday’s rally, the stock appears poised for potential further gains. Here are some critical price levels to monitor:
1. Key Resistance Zone: $22 to $26
The first crucial level to watch is around $22, where Intel’s stock is expected to open on Thursday. If the stock can sustain momentum and close above this price, it could lead to a rally toward the $26 mark. Investors who have bought shares near recent lows may look to take profits near this level, as it coincides with notable peaks from November and March.
Further upward movement could see the stock approach the $30 level, where resistance is likely to form due to the psychological barrier and prior price action that preceded the sharp drop in August.
2. Major Support Level: $19
If Intel’s stock experiences further selling pressure, the $19 mark could emerge as a key support level. This price zone has historically served as a trough, with a trendline connecting several previous lows from August to February. Bargain hunters may target this level as an opportunity to purchase shares at a discount, particularly if the broader market sentiment remains favorable.
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