1 hour ago
2
Harsh Chauhan, The Motley Fool
Sat, May 23, 2026 astatine 3:09 PM CDT 6 min read
Intel (NASDAQ: INTC) investors are having a phenomenal twelvemonth truthful far, arsenic shares of the semiconductor elephantine person changeable up astir 225% successful 2026 arsenic of this writing.
Intel banal has benefited from aggregate favorable developments this year. From its improving fiscal show to the increasing power successful artificial quality (AI) chips to the advancement that Intel is making successful its foundry business, investors person recovered respective reasons to beryllium upbeat astir the banal successful 2026.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need.
But tin this semiconductor banal prolong its awesome momentum and present much gains implicit the adjacent 2 and a fractional years? Let's find out.
Intel's valuation is simply a sticking constituent for the banal
Intel's stunning rally successful 2026 explains wherefore the banal is trading astatine a whopping 904 times trailing earnings. That's good supra its price-to-earnings (P/E) ratio of 615 astatine the extremity of 2025. Additionally, the guardant net aggregate of 147 is connected the costly side, fixed that the tech-focused Nasdaq-100 scale has a guardant P/E ratio of 26.
The valuation suggests that Intel banal whitethorn person gotten up of itself. Even the stock's 12-month median terms people of $90 points to a 25% decline. What's more, lone a 3rd of the 51 analysts covering the banal complaint it arsenic a buy. So, the Wall Street sentiment suggests that Intel banal whitethorn not present further upside going forward.
However, the institution has displayed a penchant for springing immense net surprises implicit the past 3 quarters. Its bottommost enactment has importantly exceeded analysts' expectations, and that's been cardinal to the monolithic surge successful its banal price. The bully quality for investors is that determination are signs that Intel could proceed to outpace statement expectations.
Booming spot demand, caller customers, and improving yields could substance much upside
Intel released its first-quarter results past month. The company's gross grew by a coagulated 7% twelvemonth implicit twelvemonth to $13.6 billion. More importantly, it reported non-GAAP net per stock of $0.29, up importantly from $0.13 per stock successful the year-ago period. Analysts would person settled for conscionable $0.01 successful net per share.
Intel's information halfway and AI (DCAI) conception reported 22% year-over-year maturation successful Q1 to $5.1 billion. Meanwhile, the Intel Foundry conception saw gross leap 16% twelvemonth implicit twelvemonth to $5.4 billion. These 2 segments unneurotic produced 77% of its apical enactment during the quarter. The bully quality for investors is that some businesses could proceed to turn astatine steadfast rates.
.png)
English (CA) · 
English (US) · 
Spanish (MX) ·