Intel’s stock rally lifts its trailing P/E to 904, far above Nasdaq-100’s 26 forward multiple, raising concerns over sustainability.
Intel’s shares have climbed nearly 225% in 2026, driven by stronger financials, AI chip demand, and foundry business progress. The stock now trades at 904 times trailing earnings, up from 615 at the end of 2025, while its forward P/E of 147 remains elevated compared to the Nasdaq-100’s 26.
Analyst sentiment is mixed, with only a third of 51 covering the stock rating it a buy. The median 12-month price target of $90 implies a 25% decline, though Intel has exceeded earnings expectations in the past three quarters.
The valuation gap underscores skepticism about whether the rally can continue, despite the company’s growth in AI and manufacturing.