Intel (INTC.US) gained roughly 5% yesterday as a hedge fund Third Point addressed company’s weakening position in microprocessor manufacturing against its rivals. Due to the fact that the hedge fund has taken a significant stake in Intel, it urged management to explore some strategic alternatives, including a possible breakup of the chipmaker and the sales of assets. Intel welcomed input from Third Point and looks forward to engaging with the hedge fund on their ideas, therefore its stock price rallied yesterday. Nevertheless, share price pulls back today.
Intel shares tested a downward trendline yesterday on promising partnership with an activist investor, but could not break above it. Share price has fallen roughly 25% from its June’s post-pandemic high. Third Point points out that the computer chip giant has underperformed in recent years, so pushing for changes might be seen as a promising sign. Currently the price is testing 100-day moving average. Source: xStation5
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