Intel stock dip contrasts with Dover bounce in CNBC Club recap
CNBC Investing Club said Intel’s pullback reflected foundry-client disappointment, while Dover’s rebound did not change its sell-to-strength view.
By Dev Ramirez · Crypto Correspondent
· 3 min read
The Intel stock dip Dover bounce split was the clearest stock-specific takeaway from Friday’s CNBC Investing Club with Jim Cramer Morning Meeting. For retail investors, the recap showed how two post-earnings moves can mean very different things: Intel fell despite a strong quarter, while Dover recovered after a steep drop that the Club still viewed as a warning sign.
CNBC’s Investing Club said stocks were mostly higher Friday as investors reacted to optimism that stalled U.S.-Iran peace talks could resume. According to the Club, that pushed recently rising oil prices and bond yields lower, helping the S&P 500 move higher.
The Nasdaq, which is heavily weighted toward technology stocks, was held back by weakness in chip names, according to the Club. Intel remained under pressure even after reporting what the Club described as strong earnings on Thursday evening.
Why did Intel stock dip after earnings?
CNBC Investing Club portfolio director Jeff Marks attributed Intel’s Friday decline to investor disappointment that the company did not announce new foundry customers. A foundry is a chip manufacturing business that makes semiconductors designed by other companies, a key part of Intel’s attempted turnaround.
Marks said the lack of new customer announcements could leave Intel with a future catalyst if the company proves out its manufacturing technology. He also pointed to companies seeking alternatives to Taiwan Semiconductor Manufacturing, the world’s largest chipmaker, which the Club said is currently supply-constrained.
The Club said it would have added to Intel on Friday’s pullback if its trading restrictions had allowed it. CNBC said Jim Cramer’s Charitable Trust is long Intel.
Alphabet also stabilized Friday, according to the Club, after falling the previous day following earnings. The concern around Alphabet centered on higher artificial intelligence spending, according to the recap.
Marks said investors could react negatively if other large tech holdings, including Meta Platforms, Amazon and Microsoft, raise capital expenditure plans when they report next week. Capital expenditures, often called capex, are long-term spending commitments on assets such as data centers, servers and manufacturing capacity.
The Club said 10 of its portfolio companies are scheduled to report quarterly results next week, including Starbucks, Corning, Boeing, Apple, Procter & Gamble, Eaton and Linde, along with Meta, Amazon and Microsoft.
What changed with Dover stock?
Dover shares regained part of Thursday’s nearly 8% post-earnings decline, according to the Club. BMO analysts said the sell-off looked too severe and upgraded Dover to a buy-equivalent rating, CNBC reported.
The Club took a more cautious view. It said Dover’s quarter had been a make-or-break moment, and Cramer was disappointed by an execution issue that caused the company to miss its refrigeration production volume target.
Marks said the Club was keeping Dover at a three rating, which he described as selling into strength. He agreed with BMO that Thursday’s decline was too sharp, but said that was not enough to change the Club’s view on the stock.
The Club said it did not sell Dover on Thursday because it wanted to give the stock time to stabilize. CNBC said Cramer’s Charitable Trust is long Dover.
CNBC said Investing Club subscribers receive trade alerts before Cramer makes a trade for the charitable trust. According to the Club’s stated policy, Cramer waits 45 minutes after sending a trade alert before buying or selling, and waits 72 hours after an alert if he has discussed the stock on CNBC TV.
This story draws on original reporting from CNBC.
