Intel Set to Extend Record-Breaking Rally, Undeterred by Short Sellers
$Intel(INTC)$
Trading in borrowed shares shares that were sold short jumped to 33.51 million shares Friday, the biggest among stocks with a market capital of more than $5 billion. The jump in bearish bets came after Intel reported first-quarter results that crushed expectations, sending shares up 23.60% to a closing record high of $82.54 Friday.
Trading in borrowed Intel shares that were sold short accounted for 11.91% of the 281.41 million shares that changed hands that day, according to data tracked. Short volume matters to regular investors because heavy shorting into a rally shows skepticism about the move, but it can also set up a short squeeze if buyers keep control. A short squeeze is when short sellers rush to buy back shares to limit losses, pushing prices higher.
The initial catalyst was Intel's financial results. The chip maker reported a 7.2% jump in revenue for the first quarter to $13.58 billion, surpassing Bloomberg consensus that called for $12.36 billion. That was the biggest positive surprise from Intel in more than five years. For the current quarter ending in June, revenue was forecast to reach between $13.8 billion to $14.8 billion. Even the low end of that range was higher than the average estimate of $13.04 billion.
CEO Lip-Bu Tan said last week that the next wave of AI could significantly increase the need for Intel's CPUs and wafer and advanced packaging offerings.
On Monday, TF International Securities analyst posted on x.com that OpenAi is working with Qualcomm and MediaTek to develop smartphone processors for mass production beginning in 2028. That provided an added tailwind for the rest of the semiconductor stocks, reaffirming strong demand for chips.
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- zippyloo·04-28 11:42Impressive earnings beat, but short interest rising makes me cautious.LikeReport