As traders gear up for the release of the PCE inflation gauge, a critical metric the Fed closely monitors, Jared Levy, Chief Market Strategist at Peak American Financial, shares his thoughts on Intel and what to watch in the market this week.
Three Things to Watch This Week
Jared begins by asking a key question: Did the Fed cut rates due to concerns about the economy, or is it a preemptive move to ensure a soft landing? This decision will play a significant role in shaping market sentiment in the near term.
Aside from inflation and rate cuts, Jared is also paying close attention to commercial debt. With concerns about default rates, bad loans, and banks possibly facing trouble, he is watching for any signs that could indicate broader, systemic risks in the commercial lending and banking sectors.
With so much crucial data coming out this week, Jared emphasizes that he’s staying glued to the developments.
Trade of the Day: Betting on Intel’s Rebound
The rise of AI has lifted tech giants like Nvidia, but one notable player has missed out—Intel. Once a dominant force in semiconductors, Intel has struggled to keep up, especially in the booming AI sector. Jared points out that the company has had a rough few years, with missed opportunities, a declining market share, and an underwhelming strategy from the top leadership.
However, there are some positive developments for Intel. Qualcomm has shown interest in purchasing the company, and Apollo Global Management is reportedly open to investing $5 billion. These potential deals could mark a turning point for Intel.
Jared suggests that buying Intel at its current price of around $22 could be a high-risk, high-reward opportunity. While there are uncertainties, especially with Intel’s next-generation chips not due out until 2025, the involvement of major players like Apollo signals confidence in the company’s future. Jared’s target for Intel is $28 to $29 per share, offering a promising upside for those willing to take the risk.
Final Thoughts
As the week progresses, traders will be closely monitoring inflation data, commercial debt trends, and the Fed’s moves. At the same time, Intel’s potential turnaround presents a compelling, if risky, opportunity for long-term investors. For those who are comfortable with high-beta trades, Intel may just be a stock worth watching.
CLICK HERE to watch Jared Levy on Business First AM covering his Intel Trade.
Disclosures
The sources used to prepare this material are believed to be true, accurate, and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of the information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. This article is not endorsed or approved by any other Government Agency.
In addition, Peak American specializes in providing strategies and guidance for those who want to increase their chances of “winning” in retirement. We offer no-cost strategy sessions to help you design a custom strategy for your financial future. Contact us today to schedule a meeting!
