Three Stocks: Super Micro Computer, Intel, and Corning

Corning

Materials/Technology company Corning (GLW) shares shot 12% higher today after the company provided a preview of their upcoming earnings report.

Corning - slated to announce second quarter earnings on July 30 - provided upbeat guidance on the current quarter by projecting earnings per share at the high end of last quarter’s outlook and raising its revenue forecast by $200 million.

The company also commented that they expect to announce their first quarter of year-over-year revenue growth since October 2022, despite some weakness in demand for the company’s products.

Corning is best known as the manufacturer of Gorilla Glass, the glass often used in smartphones.  The company also manufactures several fiber products for the telecommunication industry as well as other specialized materials.

Corning’s weak fundamentals dragged the company into a long-term bear market trend in March of 2022.  Since then, the stock has lost more than 40% value from its 2021 highs as Wall Street analysts downgraded the stock and lowered their target prices.

In January, shares of Corning transitioned into a long-term bull market trend.  Since then, those same analysts have started to upgrade shares and raise target prices.

Today’s move breaks Corning’s stock into new all-time high territory, trading 43% higher on a year-to-date basis.

The current average target price for Wall Street analyst’s sits 10% below the stock’s current price, signaling that we’re likely to see upgrades over the next month as Wall Street catches up to Corning’s performance.

GLW Price Chart

Intel

Intel (INTC) continues its recent rally after the stock was the target of a bullish story in Barron’s over the weekend.

Shares of the semiconductor company surged more than 6% today on heavy volume, completing a move above the $32.50 price level for the first time since April.

Intel’s coverage in Barron’s was minor, as the company was profiled as one that would benefit from election results in November of a “Blue White House, red or split Congress”.  In other words, the story wasn’t the likely catalyst for today’s rally.

Instead, the move is more likely follow-through from the stock building a strong foundational bottom at $30 over the last two months, presenting potential for a rare value investment in the otherwise overpriced semiconductor industry.

Recent activity in the options market shows increased speculation on higher prices for Intel.

Over the last week, call options at the $34- and $35-dollar strike prices have seen heavy volume.  This suggests that options traders are speculating on higher prices on Intel over the next month.

Intel is set to announce their earnings results on July 25.

Expectations have been lowered over the last two quarters as Intel has failed to show a marked increase in revenue in an otherwise booming sector.

Shares should see some resistance at $35, but Intel’s 50-day moving average has just shifted into a bullish trend for the first time since late 2023.  That shift in momentum is likely to power the stock higher.

The long-term outlook for the stock remains bullish with a target of $40 over the next 3-6 months.

INTC Price Chart

Super Micro Computer

Ai-related companies like Super Micro Computer (SMCI) got a fresh wave of buying as we move further into the month of July.

For those that may have missed it, July is one of the most bullish months of the year for large cap technology.  This is normally due to the wave of “buy the news” activity that leads to technology earnings announcements that come in the end of July (SMCI is set to report on August 6).

Super Micro Computer shares have been trading in a tightening price range since the company’s last earnings report in April.  That range has been bound by high prices around $900, a level that Super Micro Computer crossed above again today.

With little to show for headlines on Super Micro Computer, the stock’s recent move is more about the technicals and price chart.

On that note, SMCI shares are trading just above their 20- and 50-day moving averages.

Both of those key trendlines are in the process of shifting into bullish trends, which should serve as a catalyst for Super Micro Computer shares to finally remain above $900.  From there, the next challenge will be $1000, which was the stock’s high for one day in June.

A break above that psychological price will spark a “buy the rumor” rally on SMCI stock through July that is likely to press shares as high as $1,100.  From there, expect investors to wait for the August 6 earnings report before breaking the stock to new highs.

Keep in mind that Super Micro Computer raised their current quarter earnings and fiscal year guidance last quarter.

Super Micro Computer maintains its bullish outlook with a target price of $1,500.

SMCI Price Chart