u/Fickle_Rest5915

So Intel just had a blowout Q1 and the stock ripped 27%+ in a single session. Great quarter, sure. Six consecutive beats, AI chip demand, Apple partnership rumors, all that noise. I get it.
But can we talk about the valuation for a second?
INTC is currently sitting at a forward P/E of ~119x. For context, the semiconductor industry median forward P/E is around 34x. Intel ranks worse than 85% of its 537 semiconductor peers on this metric.
It now holds the highest forward P/E of any large-cap chip stock.
Let that sink in. Not the highest growth. Not the best margins. Not the most AI revenue. The highest forward multiple. On Intel. The company that spent the better part of five years losing market share to AMD, fumbling its foundry ambitions, and posting a negative trailing EPS.
The trailing P/E is literally 904x. The stock has gone from a 52-week low of $18.97 to a high of $113.50.
Nvidia trades at a fraction of this on a forward basis and is actually printing money. AMD is building real AI momentum. Meanwhile Intel is being priced like a hypergrowth darling off the back of one good quarter and vibes.
I’m not saying the turnaround isn’t real. Maybe Lip-Bu Tan actually pulls this off. But 119x forward earnings for a company that isn’t even reliably profitable yet is an extraordinary leap of faith. The market is pricing in a perfect execution scenario with zero margin for error.
Anyone else think this thing is way ahead of itself, or am I missing something?