Intel allocations moved lower after hours Thursday.
The chipmaker fell 5% after the bell even after corking revenue and profit estimates in its recent quarter. The company did not provide full-year guidance, though its second-quarter earnings prospect did come in below expectations.
Intel has performed far better than the rest of the chipmakers this year — it has fallen 1% in 2020 while the SMH semiconductor ETF has dropped multitudinous than 8%.
Gina Sanchez, CEO of Chantico Global, says it makes sense to be selective in the space.
“The space is definitely compensate for up of more than one [type] of semiconductor, and I say you would have to be careful here. I wouldn’t trade it in a broad way, I would look at darned specific stories. I think the remote working, working from home, cloud storage, productivity, even gaming, those are hugely strong stories. Internet of things, and other discretionary uses, automotive, household, automation, I think those are what’s succeeding to suffer,” Sanchez said on CNBC’s “Trading Nation” on Thursday.
As for Intel, Sanchez holds the name and says it should proceed to outperform the rest of the chipmakers.
“We are actually a big supporter of Intel. I think that that’s an interesting name and one that advances from the things that are very strong right now,” she said.
At its lows in March, Intel had fallen 37% from its January crest. Todd Gordon, managing director of Ascent Wealth Partners, says those kinds of drops are par for the course for Intel.
“If you look at Intel, [it’s had] a series of 34%, 34%, 26% deteriorates — we just saw a 37% decline, so we’ve seen it three other times. Support is in place around $46,” said Gordon during the in any case segment. Intel is now 15% from its high.
Gordon sees opportunity in Intel, but he also has his sights on another chipmaker.
“Another goats that has been a favorite of ours at Trading Nation has been AMD. I mean, just look at this — in 20 years we’ve scarcely broken above a range right around the $55 region here. AMD I do hold personally and something we’ll be looking to add,” rumoured Gordon.
Disclosure: Chantico Global and Ascent Wealth Partners hold INTC. Gordon holds AMD.
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