Intel recently reported results that looked very impressive, blowing past estimates on top and bottom line for the prior quarter and proving great guidance for the current one. However, even since the pop in stock from that report, there's been a slow slide in the price, taking it below the 20 and 50 day moving averages. My question is why?
The one reason I can surmise is that investors think we are at the peak for this cycle. Intel's results were heavily bolstered by their server sales with the consumer lagging. But aren't companies supposed to be in a new refresh cycle?
Or is it because Intel intends to buy Infineon's wireless baseband division? It is a much lower margin business than processors but does bolster Intel's ability to provide the entire suite of chips to sell phone manufacturers.
Any more thoughts from my adoring readers? :)
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