INTC Cont'd Rally In President Sworn In Week?
The stock market just notched its best week since the November “Trump bump.”
All three major indexes advanced Fri, 17 Jan 2025, with the Magnificent Seven tech stocks logging gains. (see below)
After Donald Trump won re-election in November 2024, Wall Street hopes for tax cuts and deregulation propelled stocks higher.
This week, it was (a) muted inflation data and (b) positive US growth projections that buoyed investors.
By the time market closed for the week:
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DJIA : +0.78% (+334.70 to 43,487.83). Recorded biggest weekly percentage gains since early November. and the Nasdaq recorded its best since early December.
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S&P 500 : +1.0% (+59.32 to 5,96.66). Registered biggest weekly percentage gains since early November.
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Nasdaq : +1.51% (+291.91 to 19,630.20) Recorded its best since early December.
Finally, this is the first time in 3 weeks that the 3 major indexes posted weekly gains.
This as market participants prepare for the inauguration of Donald Trump on Mon, 20 Jan 2025 and US market will be closed to commemorate Martin Luther King Jr. Day, at the same time.
As investors prepare for changes under Trump, it is important to acknowledge that the Biden administration and the Fed, inherited an ailing America during the Covid pandemic.
They have done a commendable job to fortify the stock market and rebuild the economy, that is still reeling from a sticky inflation. (see below)
It is “good” that Mon, 20 Jan 2025 is a public holiday as it allows for a “cooling” period and see what will be the returning president action items on the first day in office.
Will it be:
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His political campaign action items of mass deportation of “illegal” immigrants?
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Signing a 90-day reprieve for Tiktok from begin banned ?
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Following thru his pledge to make America "the crypto capital of the planet" when back in office ?
More importantly, will these executive orders serve to fortify the US stock market or inject added volatility into an already increasingly volatile US market ?
Whatever the case maybe, Mr Trump returning inauguration will see US’s biggest Tech companies presence in history, with the following CEOs attendance confirmation and their million dollar pledge.
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$Amazon.com(AMZN)$ - Jeff Bezos.
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$Apple(AAPL)$ - Tim Cook.
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$Alphabet(GOOG)$ - Sundar Pichar
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$Meta Platforms, Inc.(META)$ - Mark Zuckerberg.
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Tesla - Elon Musk.
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Uber - Dara Khosrowshahi.
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OpenAI - Sam Altman.
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TikTok - Shou Chew.
Business and politics have never been so intertwined until now.
Intel’s Rally.
More importantly, I am curious to see if $Intel(INTC)$ will continue with its stock price ascend.
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Shares of computer processor maker Intel jumped +9.25% on Fri, 17 Jan 2025 after Bloomberg reported the company could be a potential acquisition target. (see below)
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Intel's shares have been extremely volatile.
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In the past year, it's had 21 big swings, each time changing by more than 5%.
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Friday's change shows the market thinks the acquisition news is important, but it won't completely change how market sees Intel, the company.
The Tumble.
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The biggest swing was 6 months ago when it crashed -27.9% after (a) reporting poor earnings for Q2 2024 and (b) forecasted lower Q3 2024 sales that was lower than analysts expectations.
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It fell again when Q3 revenue (actuals) missed Wall Street's estimates.
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Looking closer, sales from PCs were hurt by trade restrictions with China and unsold inventory.
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Sales for data centers also suffered due to losing market share.
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Intel’s inventory problems are expected to persists into Q3 2025, impacting their PC and data center businesses, though not as severe as 2024.
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To manage burn rate, Intel has laid off 15% of its workforce. They also stopped paying dividends, that is never a good sign.
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Since the start of 2025, Intel's stock is up +6%. At $21.49 a share, it is still -56.63% below its 2024 peak of $49.55 (on 25 Jan 2024).
According to a report by SemiAnalysis, Tesla’s CEO, Elon Musk has emerged as the potential buyer in the ongoing speculation about Intel's future.
Comments by Dylan Patel on X, has further sparked significant buzz in the tech and finance communities.
He highlighted that Elon Musk, GlobalFoundries, and Qualcomm jets were spotted at Mar-a-Lago, suggesting serious discussions might be underway.
While this rumor should be taken with a grain of salt, it suggests that serious negotiations might be underway.
This level of involvement from major players underscores the complexity and potential impact of any acquisition deal.
With the Trump administration's focus on US-based companies, the rumour has further boosted confidence in Intel's prospects, even if a takeover does not fall through eventually.?
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Do you think Elon Musk is the right person to acquire Intel, looking at disastrous Twitter takeover ?
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Do you think the Trump government will allow Intel to belly up OR rescue it at all costs?
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