Intel (INCT) is one of the largest companies in the world of technology; and their stock is only getting better. In fact, the company recently received an analyst upgrade that sent the stock up and short interest numbers recently came out, proving that Intel is as appealing as ever. Today, we’ll talk about the analyst upgrade, the decline in short interest, what we can expect to see moving forward and how to take advantage of the trends. So, let’s get right to it…

JMP Securities Upgrades Intel

One of the reasons Intel’s stock climbed on Friday was an upgrade from JMP Securities. Previously, the analyst firm had a rating of “Market Underperform” on the stock. However, on Friday, JMP upgraded the stock to a “Market Perform Rating”. The firm explained that demand for Virtual Reality systems, an industry Intel is on the forefront of, is strong. They also explained that there is growing serveractivity surrounding Grantley; a new generation of server microprocessor created by Intel. With stronger demand for their products, the analyst noted that the stock is starting to make a “subtle shift for the better”.

Intel Short Interest Falls

When gauging investor sentiment, it’s important to pay attention to short interest. That’s because if investors believe that the value of a stock is likely to decline, they will generally short the stock; giving them a way to earn gains on downtrends. Recently, short interest data came out; showing a decrease in the amount of Intel shares sold short. Before the new report, the level of shares sold short was 119.65 million. However, on Thursday, the new number came out at 118.95 million; showing that sentiment surrounding the stock is improving.

What We Can Expect To See Moving Forward

When it comes to Intel, I have relatively mixed opinions with regard to what we can expect. Considering the analyst upgrade and the fact that short interest on the stock is declining, it’s clear that investors are starting to view the stock in a more bullish light than before. Generally, under these circumstances, I would have a more bullish opinion myself. However, there is far more to look at than short interest and investor sentiment. Unfortunately, market conditions simply aren’t what they were just three quarters ago. If you’ve been watching market movements over the past several months, you know exactly what I’m talking about. Unfortunately, economic concerns, concerns with regard to the Federal Reserve and high valuations have taken their toll on US markets. With that said, I’m expecting to see ups and downs in the short term, but when we look at the trends, we’re likely to see sideways movement overall.