With semiconductor stocks losing momentum over the past few weeks, Intel's strength is starting to show some cracks and at risk of a pullback. Here's an options strategy to capitalize on the potential decline. After being in the lead of the semiconductor industry for nearly 2 decades, Intel's design and fabrication model become their Achilles heel a few years ago.
mountain Intel, 5 years But perhaps the stock is starting to get ahead of itself on the back of an AI boom. This week's news that China is potentially phasing out Intel and AMD chips from their government usage will likely add to downside. If you look at a chart of INTC over the past 18 months, the stock has doubled from below $24 to just over $50 at the end of last year. However, just after reaching those 52-week highs, INTC has underperformed the market considerably.
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