Intel was the top trending stock in premarket trading on Tuesday after Melius Research named the company one of the top candidates for AI “catch-up” deals in the second half of 2024.
The stock rose more than 6% to a two-month high on Monday and was up 2.4% in premarket trading after Melius Research noted that Advanced Micro Devices (AMD), Apple (AAPL) and Intel could start to catch up with AI winners like Nvidia (NVDA) later this year.
“We believe we will see some lower-expected companies in the semiconductor, hardware and even software space do 'catch-up' deals,” Melius analyst Ben Reitzes said.
Meanwhile, Mizuho Securities analyst Jordan Klein noted that there is “clear short-covering activity going on” at chip makers such as Intel.
But the analyst noted that long-only investors don't like Intel and aren't interested in buying it, “so a real bounce above the mid-$30s in the coming months is unlikely,” he added.
Read more: Live: FTSE 100 weak, European markets down, traders focus on Powell speech
The chipmaker's shares also rose on excitement over upcoming processors that could bolster the company's position in AI and the gaming hardware market.
Intel is preparing to launch a new graphics processing unit (GPU) that will be manufactured by Taiwan Semiconductor Manufacturing (TSM).
Chipotle (CMG)
Investor excitement over the Mexican fast-food chain's 50-for-1 stock split appears to be fading, as the company's shares fell more than 5% in trading on Monday and were up only slightly in premarket trading.
Chipotle Mexican Grill's first-time stock split is one of the largest in the history of the New York Stock Exchange. Before the split, each CMG share was priced at more than $3,200. Today, investors can buy the stock for $59 a share.
In a blow to the stock, Wedbush recently downgraded the company's shares to “neutral” with a new price target of $3,200, while TD Cowen and Baird maintained positive ratings with price targets of $3,600 and $3,500, respectively.
Read more: Today's Trending Stocks
Chipotle and other companies have been accused recently of “shrinkflation,” or the mindset that you can get less for the same price.
Research by Wells Fargo analyst Zachary Fadem found that Chipotle's portion sizes vary widely: Fadem and his team ordered the same burrito bowl 75 times from different locations in New York City and found that the weight of some bowls varied widely, from under 15 ounces to over 21 ounces.
The story continues
BP expects to book impairment losses of up to $2 billion (1.6 billion pounds) in the second quarter and warned that lower refining margins will hit oil trading profits by up to $700 million.
The company said in a trading statement that its second-quarter results would show an “unfavorable after-tax reported item” related to its ageing refining operations in Germany.
“Second quarter results are expected to include unfavorable after-tax adjustments in the range of $1 billion to $2 billion related to asset impairments and related unfavorable contractual terms.
“This also includes costs associated with the ongoing investigation into our Gelsenkirchen refinery in Germany,” BP said.
Read more: Is the Bank of England expected to cut interest rates in August?
The company said it expects weaker refining margins and oil trading results to impact its second-quarter earnings, due to be reported July 30. It estimates the impact to be between $500 million and $700 million.
Last week, rival energy giant Shell (SHEL.L) similarly said it expected after-tax impairment losses of up to $2 billion, mainly related to plants in Singapore and Rotterdam.
Budget airline Wizz Air expects further delays to deliveries of Airbus (AIR.PA) planes but remains confident it can increase capacity over the coming years, CEO Jozsef Varadi told Reuters.
Jozsef Baladi said Hungarian airlines insisted the delays would not affect capacity, even though 45 planes have already been grounded for inspections over concerns about Pratt & Whitney engines, with another 35 to be grounded next summer.
Read more: New Labour government's top five pension priorities
“We are assuming delays in Airbus deliveries, but they are already experiencing six-month delivery delays,” he told Reuters. “The actual impact will be quite limited,” Varadi added.
European plane makers cut their targets last month as they face continuing supply disruptions.
Baladi said the company expects continued deliveries of about three aircraft per month, increasing capacity by 20 percent next year and 20-25 percent the year after.
Download the Yahoo Finance app, available for Apple and Android.
