Intel (INTC) is a name everyone knows; with a market cap over $200 billion, it's the world's largest semiconductor maker, notes growth stock expert Rich Suttmeier, editor of 2-Second Trader.

The company dominates the processor market for desktop PCs, laptops, and servers. And trends like cloud computing and artificial intelligence are creating new growth markets for Intel to target. 

Intel reported its latest quarterly results about a month ago — on July 23.  Revenue and earnings per share (EPS) were both above analysts' estimates. But management's forward guidance was cautious.

The company also announced that its next-generation chips (called "7-nanometer") will be delayed due to problems in the manufacturing process. The news sent shares of Intel plunging. But Intel's recent weakness gives us a huge opportunity.

The stock remains in a steady, long-term uptrend. Last month's selloff did not break that uptrend. It merely pushed the stock down to an attractive level for purchase.

By buying shares of Intel today, we could generate a gain of about 33% over the next few months. We'll also benefit from a dividend yield of 2.7%. Let's take a look at the weekly chart...

Intel

As you can see, Intel has been in a steady uptrend over the past five years. Like most stocks, Intel bounces up and down at times due to volatility. But the overall trend is clearly up.

The green line is Intel's 200-week simple moving average (SMA). As most readers know, the 200-week SMA is an important technical level for every stock we look at. In this case, you can see how it acts as "support" for Intel. Whenever the stock falls down to the green line (or gets close), it quickly rebounds. 

As you can see in the chart, shares of Intel have held above the 200-week SMA for the past five years. And now they're back near the line (currently at $47.56).

If Intel had broken through the 200-week SMA, it would have been a negative technical signal for traders. Instead, Intel held above this critical level — which gives us the green light to buy.

I expect Intel to continue to hold above its 200-week SMA (now at $47.56). And I expect the stock to continue its long-term uptrend and rebound toward its semiannual risky level at $65.02.

There's a high probability that Intel will rally up to its semiannual risky level by the end of 2020. If it does, we'll generate a 33% gain from current levels, plus any dividends we collect while holding our position. 

While we wait for the strength to materialize, we'll collect a dividend that yields 2.7%, annually. Technically, the stock is oversold right now. In other words, the recent weakness in Intel has knocked it down to a great price for longer-term investors. 

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