Northland Securities Upgrades Intel to Outperform as INTC Attempts Breakout Above $100
Key Takeaways
- •On8 September, Northland Securities lifted its Intel rating to Outperform with a $120 price target, pointing to server processor shortages, business turnaround progress, and possible upside from the Terafab project involving Tesla and SpaceX.
- •Intel reportedly plans an approximately 10% processor price increase beginning in October, a response to rising costs and limited supply that would raise component costs for equipment makers if carried out.
- •Intel shares have moved above the $100.00 upper boundary of their market profile, with a red resistance level at $109.00 sitting relatively close to the current price.
- •The RSI at 75 has entered overbought territory while the moving averages at 56 and 51 remain in the neutral zone, a combination the analysis says casts doubt on the breakout attempt.
- •A false breakout could push the price back toward the $92.00 Point of Control, the $86.00 lower profile boundary, or the green support level near $82.00.
On 8 September, Northland Securities raised its rating on Intel (INTC) to Outperform and set a price target of $120, citing a shortage of server processors, progress in the company's business turnaround, and potential benefits from its involvement in the Terafab project alongside Tesla and SpaceX. An Outperform label generally indicates that an analyst expects a stock to beat its sector over the rating horizon, and the $120 target sits roughly 20% above the $100.00 boundary that anchors the chart analysis below.
The same day, reports emerged that Intel plans to lift processor prices by roughly 10% starting in October, amid rising costs and limited supply across the supply chain. For readers tracking the broader hardware market: Intel is one of the largest suppliers of processors for PCs and data-center servers, so the reported increase would, if implemented, raise that line of component costs for equipment makers. Together, the higher prices and the positive rating revision are helping to sustain investor interest in Intel shares against the backdrop of strong performance across the semiconductor sector.
Intel Technical Analysis
From 30 June to 29 July, a short-term trend formed on the INTC four-hour chart. After a decline, the market corrected higher, with the rebound tracing an ascending trendline. The price subsequently broke below this trendline, but the move was not confirmed by the RSI + MAs indicator. The price then reversed direction and moved quickly through the current market profile, breaking above its upper boundary $100.00, where it is now attempting to establish itself.
The red resistance level at $109.00 sits relatively close to the current price. The RSI + MAs indicator currently stands at 75, 56, and 51: the RSI has already entered overbought territory (readings above 70 are conventionally treated as overbought), while the moving averages have yet to leave the neutral zone — a combination the analysis describes as making the current breakout attempt look questionable.
If the market produces another false breakout, a return into the market profile could bring several important levels into play, including the Point of Control (POC) at $92.00 — the price level where the most volume traded within the profile — and the lower boundary of the profile at $86.00. Below that level, and relatively close by, lies the green support level around $82.00.
Key Takeaways
According to the analysis, the RSI sitting in overbought territory while the moving averages remain in the neutral zone casts doubt on a potential breakout of the profile. The short distance to the red resistance level could further strengthen the current resistance zone. Investor reaction to the planned October price increase could serve as an additional factor influencing the stock's price action.
