Intel Corp. (NASDAQ:INTC) stock fell more than 2% in Monday’s premarket trading as investors took profits following the stock’s strong rally. Nasdaq futures rose 0.19%, while S&P 500 futures gained 0.54%.

Investors locked in gains after Intel’s sharp move higher and grew more cautious about elevated valuation expectations. Concerns over the company’s heavy capital spending also continued to weigh on sentiment.

AI Demand Strengthens Turnaround

Intel recently reported its fastest revenue growth in 15 years, with second-quarter revenue rising 25% year over year to $16.1 billion as AI data-center demand supported its turnaround.

CEO Lip-Bu Tan said AI is creating “unprecedented demand for compute” and added that Intel is “well-positioned to capture sustainable growth.” The company also raised its 2026 capital spending plan to $20 billion from $18 billion.

Intel’s data center and AI revenue jumped 59% to $6.3 billion. Foundry revenue rose 31% to $5.8 billion.

Tan also said Intel remains “fully committed” to high-volume production of its 14A manufacturing process in 2028.

Technical Analysis

Intel remains in a long-term uptrend despite the recent correction. The stock has gained 362.56% over the past 12 months and trades 31.3% above its 200-day simple moving average of $67.04.

However, near-term momentum has weakened. Intel trades 12.4% below its 20-day SMA of $100.50 and 22% below its 50-day SMA of $112.81, indicating continued short-term selling pressure.

The 20-day SMA has crossed below the 50-day SMA, a bearish signal that points to weaker near-term momentum. However, the longer-term golden cross, with the 50-day SMA above the 200-day SMA, remains intact, suggesting the broader uptrend has not been broken.

The moving average convergence divergence (MACD) indicator also remains below its signal line, signaling fading bullish momentum.

Key resistance stands near $92.46, around the 100-day SMA. Key support is near $67.04, the 200-day SMA.

Analyst Outlook

The stock carries a Hold rating with an average price forecast of $109.07. Recent analyst moves include:

  • Bank of America Securities: Buy (Maintains Forecast to $160.00) (July 28)
  • Baird: Neutral (Raises Forecast to $125.00) (July 27)
  • DA Davidson: Neutral (Raises Forecast to $100.00) (July 24)

Top ETF Exposure

  • iShares Semiconductor ETF (NASDAQ:SOXX): 6.11% Weight
  • Pacer Data and Digital Revolution ETF (NYSE:TRFK): 7.85% Weight
  • Essential 40 Stock ETF (NASDAQ:ESN): 5.81% Weight

Significance: Because INTC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

INTC Stock Price Activity: Intel shares were down 2.22% at $88.20 during premarket trading on Monday, according to Benzinga Pro data.

Photo via Shutterstock

Read Next: