Intel's Guide Confirms Tech Boom

Intel (Nasdaq: INTC), along with some other news, had a positive earnings pre-announcement for Q2. They took their revenue target from $16.3B to $16.9B. Their EPS estimate moved up from $.85 to $.91.

Let's see what that means for tech stocks overall.

Accelerating Revenues

In late April and early May, if you remember, we were calling for tech stocks to start hitting new highs. Stocks were much lower then. We said the same for FANG stocks in mid-April expecting new highs there too.

Since then the Nasdaq (QQQ) and FANG have both recently broken out to new highs.

The core reason to our thesis for coming break-outs was that multiple major tech companies were seeing accelerating revenue growth.

Now Let's See If Intel Confirms That Trend

Intel's a pretty important tech player, right? Q2's not even over and they had reason to announce their thoughts on the quarter yesterday.  Here's their revenue trajectory based on their guide they gave yesterday.
 

Notice anything here? Not only is their one-year revenue growth accelerating from 2.4% to 15% in just a few quarters, their two-year growth rate is also accelerating.

That means this year's growth rate is not simply benefiting from easier numbers from last year. The two-year means as we add up this year's growth with last year's same-quarter growth you have a legitimate acceleration in the numbers.  That's bullish for tech in general.

Intel confirms our tech stock boom thesis. Accelerating revenues for tech should mean more new highs for the stocks.

Conclusion

A key stat for tech was confirmed yesterday. Intel's early guide confirms the accelerating revenue growth story for for the biggies in tech for Q2. That revenue growth story was a key metric in helping us expect the current strength in tech stocks.