"Give or take a few dollars and cents, INTC stock advanced from $20 to $40 in 2026. Interestingly, most of the upside movement occurred during the final four months of the year. At long last, the market came to appreciate Intel's foundry business, in which the company will produce semiconductors rather than just design them. Some people don't realize that many chip companies outsource part or all of the production process to other businesses, such as Taiwan Semiconductor ( NYSE:TSM)."
"With Lip-Bu Tan having taken over Intel's CEO position from Pat Gelsinger, investors had renewed hope for the company. Maybe Intel could compete successfully in a fierce AI chip market, after all. That said, it may be difficult to justify INTC stock roughly doubling in 2025. Alarmingly, Intel's trailing 12-month price-to-earnings (P/E) ratio stands at a lofty 727.25x. Even market darling NVIDIA's P/E ratio isn't as high as that."
Intel's stock roughly doubled from about $20 to $40 during 2025, with most gains occurring in the final four months. Markets began valuing Intel's foundry business as the company shifts toward manufacturing semiconductors rather than solely designing them, joining peers that outsource fabrication. Leadership changed when Lip-Bu Tan replaced Pat Gelsinger as CEO, renewing investor hopes for competitiveness in the AI chip market. Despite the rally, Intel's trailing 12-month price-to-earnings ratio reached an unusually high 727.25x, well above NVIDIA's, prompting caution among some investors who prefer to wait for price consolidation before committing to large purchases.
Read at 24/7 Wall St.
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