Trending tickers: Intel, Chipotle, BP and Wizz Air

Intel (INTC)

Intel was the number one trending stock in pre-market trading on Tuesday after Melius Research listed the company as among the top contenders for the AI "catch-up" trade in the second half of 2024.

Shares climbed more than 6% to a two-month high on Monday and were up by 2.4% in pre-market trading after Melius Research noted that Advanced Micro Devices (AMD), Apple (AAPL) and Intel could start catching up with AI winners such as Nvidia (NVDA) in the second half of the year.

"We are believers in a 'catch-up' trade for some in semis, hardware and even software — those with lower expectations," said Melius' analyst Ben Reitzes.

Separately, Mizuho Securities' analyst Jordan Klein noted that there was '"a clear short cover trade underway” in chipmakers like Intel.

However, the analyst noted that no long-only investors like or want to buy Intel, adding that, "so a true rebound beyond mid $30s is unlikely in my view in coming months."

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The chipmaker's share price also got a boost due to excitement surrounding upcoming processors that could strengthen the company's position in the AI space and gaming hardware market.

Intel is gearing up to launch a new graphics processing unit (GPU) that is set to be fabricated 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 fell over 5% in Monday’s session and made only shy gains in pre-market trading.

Chipotle Mexican Grill’s first-ever stock split is one of the largest in the history of the New York Stock Exchange. Before the split, one share of CMG stock cost more than $3,200. Now, investors can buy shares for $59 each.

In a hit to the share price, Wedbush recently downgraded the stock to "neutral" with a new price target of $3,200, while TD Cowen and Baird maintained their positive ratings with targets of $3,600 and $3,500, respectively.

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Chipotle and other companies have lately been accused of “shrinkflation” — the idea of getting less for the same price.

A study by Wells Fargo analyst Zachary Fadem brought to light substantial inconsistencies in Chipotle’s portion sizes. Fadem’s team ordered the same burrito bowl 75 times from various locations in New York City, revealing significant variation in weights, with some bowls weighing under 15 ounces and others over 21 ounces.

BP (BP.L)

BP expects to book an impairment of up to $2bn (£1.6bn) for the second quarter, and warned that its oil-trading earnings will take a hit of up to $700m from lower refining margins.

In a trading statement, the oil giant said its second quarter results would show “post-tax adverse reporting items” relating to its ageing refining operations in Germany.

“The second quarter results are expected to include post tax adverse adjusting items relating to asset impairments and associated onerous contract provisions in the range of $1bn to $2bn.

“This includes charges relating to the ongoing review of our Gelsenkirchen refinery in Germany,” BP said.

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The company said it anticipates weak refining margins and oil trading performance will weigh on its second-quarter results, due out on 30 July. The hit is estimated between $500m to $700m.

Last week, rival energy giant Shell (SHEL.L) similarly announced that it expects to record a post-tax impairment hit of up to $2bn, mainly linked to its Singapore and Rotterdam plants.

Wizz Air (WIZZ.L)

Wizz Air expects further delays in deliveries of Airbus (AIR.PA) planes, but the budget carrier remains confident it can increase its capacity over the next few years, its chief executive Jozsef Varadi told Reuters.

Jozsef Varadi said the Hungarian carrier insisted the delays will not impact capacity, even as it is already grappling with 45 of its planes being grounded for inspections amid concerns over their Pratt and Whitney engines. Another 35 planes will be grounded next summer.

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"We are making assumptions that Airbus will have delivery delays, but they already have six-month delivery delays," he told Reuters. "The real impact will be fairly limited," Varadi added.

The European plane maker cut its targets last month as it faces ongoing supply disruptions.

Varadi said the airline is still expecting continuous deliveries of about three aircraft a month, with 20% growth in capacity next year and 20% to 25% the following year.

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