Has Intel's Stock Peaked?

By David Jagielski, CPA – Mar 9, 2026 at 5:00PM ESTKey PointsExcitement around Intel's foundry business has been building over the past year.The company's foundry segment grew by 4% last quarter.Intel's stock is expensive, however, currently trading at around 85 times its expected future earnings.Intel (INTC +4.96%) has been a scorching-hot stock over the past 12 months, as it has more than doubled in value during that stretch. In January, the stock hit a 52-week high of $54.60, but it's now down about 18% from that level. Growth investors have become increasingly bullish on Intel as a result of its foundry business and the hope for tremendous opportunities ahead due to artificial intelligence (AI). But with so much optimism effectively priced into the tech stock these days, did it already reach a peak in January, or can this still be a good buy right now? Image source: Getty Images. There are still many question marks surrounding the business While Intel's stock enjoyed a great year on the markets last year, that doesn't mean the business has proven that it's a safe investment, or that its future growth is assured. The hope is that it will be a top AI chipmaker in the U.S., but simply securing investments from the U.S. government and even Nvidia are by no means proof of that. What matters are the cold-hard numbers, and the ability for Intel to be able to compete against Taiwan Semiconductor Manufacturing. And when Intel reported its most recent numbers back in January, they didn't look all that great. The company's overall revenue was down 4%, although the positive was that its foundry operations generated 4% positive growth. The bigger issue, however, is profitability. The company's foundry segment incurred an operating loss of $2.5 billion, which was larger than the $2.2 billion loss it posted a year ago. ExpandNASDAQ: INTCIntelToday's Change(4.96%) $2.15Current Price$45.58Key Data PointsMarket Cap$217BDay's Range$41.66 - $45.7652wk Range$17.66 - $54.60Volume2.7MAvg Vol101MGross Margin35.24% Intel's stock looks expensive Due to Intel's significant run-up in value last year, plus its 20% rally thus far in 2026, the stock is incredibly expensive right now. Even based on forward earnings, which are based on analyst projections, the stock trades at a multiple of 85. That's astounding, given not only the risk with Intel's stock and that the average stock on the S&P 500 only trades at 22 times its estimated future profits. At this type of valuation, investors are paying a massive premium. There's simply too much optimism priced into Intel's valuation right now to make it a good buy. While it's still rallying this year, I do think it may have already reached a peak. It has been a highly volatile investment over the past 12 months, and while it has looked great, I wouldn't be surprised to see the stock give back some more gains in the weeks and months ahead.Read NextMar 5, 2026 •By Adria CiminoThis AI Stock is Now Nvidia's Biggest Holding. Is it a Buy?Mar 5, 2026 •By Jack DelaneyIntel Stock Dropped by More Than 6% in February. Here's What Happened.Mar 4, 2026 •By Billy DubersteinWhy Intel Rallied TodayMar 3, 2026 •By Keith NoonanWhy Intel Stock Is Sinking TodayMar 3, 2026 •By Sean WilliamsNvidia Dumped Its Stakes in Arm Holdings and Applied Digital, and Has Seen Its Newest Investment Double in 2 MonthsFeb 27, 2026 •By Harsh ChauhanIs Intel Stock Going to $100?About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedIntelNASDAQ: INTC$45.58(+4.96%)+$2.16Taiwan Semiconductor ManufacturingNYSE: TSM$348.47(+2.83%)+$9.58NvidiaNASDAQ: NVDA$182.64(+2.71%)+$4.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.