Here’s What Happens When a Forgotten Tech Stock Breaks Out
It’s been a banner year for household-name tech stocks.
The FAANGs have captured investors’ imaginations. Facebook, Apple, Amazon, Netflix and Google are paving the way to market-beating gains. They’re the plays every investor has in their portfolio.
Frankly, I don’t blame anyone for falling under the FAANGs’ spell. Shares of Amazon are up almost 30% year to date. Apple stock is up 35%. Facebook and Netflix are each up nearly 50%.
The gains are staggering. But we’re now beginning to see signs that these stocks are cooling off. Even the big market leaders can’t keep up the breakneck pace set earlier this year. They’ll need to digest their gains before making a go at another rally.
But that doesn’t mean we have to sit on the sidelines and wait for these stocks to set up for new trades.
In fact, one of Wall Street’s oldest (and greatest) tech names is already filling the performance void left by these formerly red-hot names. This forgotten blue chip was left in the dust for most of the year. Now it’s ready to make up for lost time.
The company I’m talking about is storied chipmaker Intel Corp. (NASDAQ:INTC).
Intel is finally streaking to new highs this month. But up until recently, this household name was dead in the water. Not only was it lagging its peers in the red-hot semiconductor space, it was also unable to even keep up with its fellow Dow components.
Sometimes the market’s biggest moves happen right under your nose. While everyone was hooked on rival NVIDIA (NASDAQ:NVDA) as it tore through the semiconductor space, Intel was slowly and steadily setting the stage for a huge move.
The result is a blue-chip breakout more than 12 months in the making.
It took more than one year of choppy, sideways consolidation to set up the Intel breakout we’re seeing right now. The stock fell back from the top of its range no less than four times before finally picking up enough momentum to push to new highs. Once the stock cracked $37 two weeks ago, INTC was off to the races.
But Intel isn’t just benefiting from the rising tide of semiconductor stocks. The company is working on some impressive projects these days…
“I think the market isn’t appreciating what Intel is doing enough,” our lead tech analyst Ray Blanco says. “The company is pushing hard into A.I. and autonomous driving technology. Moreover, it’s working on Xpoint phase change memory, which has the potential to completely upend the computer memory market.”
You might also recall that Intel purchased MobilEye NV (NYSE:MBLY) back in March for $15.3 billion. MobilEye is one of the leaders in making self-driving cars a reality. Every single carmaker from Ford to Tesla is working on making autonomous vehicles a reality. The race to a fully-functioning self-driving car has sparked a buyout frenzy when it comes to the technology that will make this dream a reality. And Intel is right in the thick of it.
With competition in autonomous vehicle technology heating up, artificial intelligence making headlines and semiconductors soaring to new highs once again this week, INTC has all the fuel it needs to extend its breakout move.