Intel and Dover stock moves split CNBC Investing Club views
CNBC Investing Club cited foundry-client timing at Intel and an execution miss at Dover as stocks moved in opposite directions Friday.
By Marcus V. Thorne · Markets Editor
· 3 min read
Intel Dover stock moves drew contrasting assessments Friday from CNBC Investing Club, as Intel extended losses after quarterly results while Dover recovered part of its prior session decline. The broader equity market was mostly higher, with CNBC Investing Club attributing the tone to optimism that stalled U.S.-Iran peace talks could resume, a shift it said helped pull oil prices and bond yields lower and supported the S&P 500.
The Nasdaq faced pressure from chip shares, according to the club’s morning briefing. Intel, one of the club’s holdings, traded lower despite what the club described as a strong earnings report released Thursday evening.
Why did Intel stock fall after earnings?
Jeff Marks, portfolio director at CNBC Investing Club, said the market reaction reflected investor disappointment that Intel did not disclose additional customers for its foundry business. He said the absence of a new client announcement leaves a potential future catalyst if the company can demonstrate progress in manufacturing technology.
A foundry makes chips designed by other companies, allowing those customers to outsource production rather than operate their own fabrication plants. Marks said companies are seeking alternatives to Taiwan Semiconductor Manufacturing, which he described as the world’s largest chipmaker and as supply-constrained at present.
CNBC Investing Club said it would have added to its Intel position on the pullback if not for its trading restrictions. The club said Jim Cramer’s Charitable Trust holds Intel among other portfolio names.
Dover rebounds after post-earnings selloff
Dover shares recovered some ground Friday after falling nearly 8% on Thursday following its earnings report, according to the club. BMO analysts said the selloff appeared excessive and raised their rating on Dover to a buy-equivalent view, CNBC Investing Club reported.
The club did not adopt BMO’s more constructive stance. It said Dover’s quarter was pivotal for its assessment of the position, and Jim Cramer was disappointed by what the club described as an execution problem that led the company to miss its refrigeration production volume target.
Marks said the club kept Dover at a “three” rating, which the club defines as selling into strength. He said BMO’s view that the Thursday decline was too severe did not alter the club’s plan to move on from the holding, though the club did not sell on Thursday in order to let the share price stabilize.
Alphabet stabilizes as investors watch AI spending
Alphabet, another club holding, steadied Friday after declining a day earlier following earnings. CNBC Investing Club said the pressure came from concerns about higher spending tied to artificial intelligence.
Marks said similar capital expenditure increases from Meta Platforms, Amazon and Microsoft, all due to report earnings next week, could draw negative investor responses. The club said 10 of its portfolio companies are scheduled to post quarterly results next week, naming Starbucks, Corning, Boeing, Apple, Procter & Gamble, Eaton and Linde in addition to those large technology companies.
CNBC Investing Club said Cramer’s Charitable Trust is long Starbucks, Corning, Boeing, Eaton, Apple, Amazon, Microsoft, Procter & Gamble, Linde, Broadcom, Intel, Alphabet and Meta Platforms. The club said subscribers receive trade alerts before Cramer makes a trade, with a 45-minute waiting period after an alert and a 72-hour waiting period when he has discussed a stock on CNBC television.
This story draws on original reporting from CNBC.
