Source: PaxForex Premium Analytics Portal, Fundamental Insight

Intel shares are traded 18% lower than last year, 14% above its March bottom. Meanwhile, the S&P 500 grew by 4% in 2020 and Intel Advanced Micro Devices by 72%. Critics argue that the recent Intel manufacturing problem in its 7-nanometer chips allows AMD to take a share of the data center and home computing market. It is particularly unpleasant at a time when the home computing policy is stimulating a high demand for this category of products. The production problems are so deep that Intel is actually using third party services such as Taiwan

Semiconductor Manufacturing for the first time in years.  Even before the crisis and long delays in production, 2020 looked like a roller coaster. Hyper-scale data center customers ordered a ton of processors in 2019 as they developed their cloud computing capabilities. This year, this spike was expected to turn into a decline. The decision to use third parties has not come easy. And using the same production capacity as AMD, and many other competitors are abandoning their own production for some time. However, this does not give Intel's competitors a higher position. Conducting a fight on a level playing field is not a usual situation for Intel. In early September, Intel updated its corporate identity, replacing the classic logo of the company and promised to "jump into the future" with new strength.

Here is what Intel said: "We are a different company than we were even five years ago. We are actively pursuing a new growth strategy, creating a new revenue structure and exploiting new market segments fueled by data and artificial intelligence growth, the transformation of the 5G network and intellectual advantage," said Karen Walker, senior vice president, and chief marketing officer, in a statement prepared by Intel.  "We know that a new brand will not come alive with new colors, sounds, and a new logo; it has to be a rallying cry, built on action and aligned with our company's goals". The company is also increasing investment in production capacity, preparing to regain lost technology advantage in the next few years.

Provided that the company is traded above 47.80, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 49.60
• Take Profit 1: 52.30
• Take Profit 2: 53.50

Alternative scenario: 

In case of breakdown of the level 47.80, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 47.80
• Take Profit 1: 46.00
• Take Profit 2: 44.80