Intel Corp. (NASDAQ:INTC) stock rose about 5% in Monday's premarket trading as chip stocks gained alongside the broader market.
Nasdaq futures climbed 0.98%, while S&P 500 futures rose 0.71%. Dow Jones futures gained 0.92%, and Russell 2000 futures advanced 0.81%.
Intel is benefiting from a risk-on market backdrop as traders move into technology and semiconductor stocks.
The stock also enters Monday with strong momentum. Intel shares have gained about 278% over the past 12 months.
That sharp rally has kept momentum traders focused on the stock. However, it has also pushed Intel well above several key moving averages.
Recent company-specific developments have also supported interest in Intel. Altera, in which Intel holds a 49% stake, confidentially filed for a U.S. IPO, MarketDash reported Saturday.
Reuters also reported Sept. 16 that SK hynix Inc. (NASDAQ:SKHY) was in early talks about potentially producing memory chips at Intel facilities.
Technical Analysis
INTC is trading 19.2% above its 20-day simple moving average of $95.87. It is also 48.1% above its 200-day SMA of $77.16.
The 50-day SMA of $97.09 remains above the 200-day average. That supports the longer-term bullish trend. However, the 20-day average remains below the 50-day SMA, suggesting some near-term consolidation.
Momentum is improving. The MACD is above its signal line, while the histogram is positive. That suggests buyers are gaining strength.
Resistance sits near $126.50. Meanwhile, $102.50 represents an important support area.
Traders may also watch the 100-day SMA at $106.80 and the 100-day exponential moving average at $95.53 if the stock pulls back.
Analyst Outlook
Intel carries a Hold consensus rating with an average price forecast of $112.74.
Tigress Financial raised its price target to $145 and maintained a Buy rating on Sept. 15. Piper Sandler initiated coverage with a Neutral rating and $110 target on Sept. 10. Northland Capital Markets upgraded Intel to Outperform with a $120 target on Sept. 8.
Momentum Scorecard
INTC has a Momentum score of 98.93 on the market data scorecard. The reading reflects the stock's strong price trend relative to the broader market.
However, after its steep advance, traders will be watching whether INTC can hold key support during any pullback.
ETF Exposure
INTC is a major holding in several technology ETFs. The iShares Semiconductor ETF (NASDAQ:SOXX) has a 5.68% weighting in Intel. The State Street SPDR NYSE Technology ETF (NYSE:XNTK) has a 5.98% weighting, while the Essential 40 Stock ETF (NASDAQ:ESN) has a 5.56% weighting.
As a result, flows into or out of those funds can also influence shares.
Price Action
Intel shares were up 4.97% at $114 in Monday's premarket trading, according to market data.
