Intel Earnings: Key Support and Resistance Levels to Watch

Intel shares will be in focus this week ahead of its Q2 earnings report. The stock has retraced towards the lower trendline of an ascending channel on declining volume, indicating caution. Crucial support levels to watch are $22 and $19, while resistance levels are near $26 and $30. Investors will be looking for updates on the company's foundry business and potential changes to its contract chipmaking business.

Intel (INTC) shares will be under intense scrutiny this week as the company prepares to release its Q2 earnings report. The stock has been retracing towards the lower trendline of an ascending channel on declining volume, signaling caution among investors. Key support levels to watch are $22 and $19, while resistance levels are near $26 and $30. Investors will be particularly interested in updates on Intel's foundry business and any potential changes to its contract chipmaking operations.

According to analysts, all 11 analysts covering Intel have a "hold" rating for the stock, with a consensus price target near $22 [1]. This suggests a slight pullback from Friday's close just over $23. The foundry division, which focuses on contract chipmaking, is a significant area of interest. New CEO Lip-Bu Tan is reportedly considering a shift in manufacturing processes that could lead to billions in technology cost write-offs. This move aims to attract major customers like Nvidia (NVDA) and Apple (AAPL) [1].

Wall Street expects Intel to report quarterly revenue of $11.93 billion, down 7% year-over-year, and adjusted net income of $74.5 million, or 2 cents per share, compared to a year earlier [1]. Revenue from the foundry division is expected to have fallen 7% to $3.98 billion. Intel has also been laying off thousands of workers in Oregon as part of its restructuring plan [1].

Intel's Q2 earnings report is expected to show a decline in both revenue and earnings per share (EPS) compared to the prior year. However, the company's aggressive cost-cutting and operational streamlining efforts are beginning to stabilize the business [2]. Short interest in Intel has surged to 128.3 million shares as of June 30, 2025, or 2.95% of the float, indicating a high risk of a short squeeze if earnings surprise to the upside [2]. The short interest ratio (SIR) stands at 1.41 days, meaning it would take just over a day to cover all short positions at current trading volumes [2].

Intel's new CEO, Lip-Bu Tan, has implemented a series of changes aimed at rebuilding the company's culture of innovation. These include flattening the organizational hierarchy, eliminating non-core products, and mandating a 4-day workweek to boost productivity. The company has also prioritized engineering over bureaucracy and is focusing on advanced manufacturing processes [2]. The federal government's role is significant, with Intel receiving an $8.5 billion CHIPS Act grant and $100 billion in private investment for next-gen manufacturing infrastructure [2].

The expanded collaboration between Wipro and Intel Foundry is designed to accelerate chip design innovation, particularly in AI chip manufacturing [3]. This partnership aims to address the rising demand for AI chip manufacturing as companies race to roll out generative AI-enabled products. Wipro's design services strength paired with Intel Foundry’s manufacturing prowess will enable clients to leverage Gen AI-driven designs and foundry services to drive ongoing innovation [3].

In conclusion, Intel's Q2 earnings report will be a critical test for the company's turnaround efforts. Investors will be closely watching the interplay between short-position dynamics and operational execution. While the stock remains speculative, the risk profile is shifting, and a hedged approach may be advisable for investors.

References:
[1] https://finance.yahoo.com/news/analysts-think-intel-stock-ahead-090000431.html
[2] https://www.ainvest.com/news/intel-earnings-short-squeeze-catalyst-turnaround-gains-2507/
[3] https://www.wipro.com/newsroom/press-releases/2024/wipro-and-intel-foundry-announce-new-collaboration-to-advance-chip-design-and-development/