Intel trading at a ~119x forward P/E and nobody is talking about this
u/Fickle_Rest5915 ·
Reddit — r/stocks
· May 06, 2026 at 16:28
· ⬆ 122 pts
· 💬 54 comments
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Summary
The post highlights Intel’s forward P/E of ~119x, the highest among large-cap semiconductor peers (median 34x), after a 27%+ single-day surge on a blowout Q1.
The author argues the market is pricing in a perfect turnaround scenario (Lip-Bu Tan’s execution) without margin for error, despite Intel’s recent history of losing market share and negative trailing EPS.
Quality assessment: Well-structured speculation with clear valuation data, but relies on forward earnings estimates and sentiment; not a deep-dive fundamental analysis, but still a data-driven cautionary note.
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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?
Intel trades at 119x forward P/E vs. semiconductor median of 34x; trailing P/E is 904x; Nvidia trades at a fraction of that multiple with far stronger earnings. The extreme multiple implies the market discounts years of flawless execution. Any stumble (e.g., foundry delays, AI share loss) could trigger a sharp re-rating downward. If the turnaround story disappoints or AI hype fades, Intel’s valuation is vulnerable to a major correction, making it a candidate for a short (or avoid) position. Continued positive earnings beats, Apple partnership rumors materializing, or broader AI frenzy push the stock higher despite the multiple.
This Reddit post, published May 06, 2026,
features u/Fickle_Rest5915
discussing INTC.
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