Key Points
-
Intel is riding the momentum around the need for its computer chips for AI processes.
-
The company is making large deals with AI cloud computing players.
-
Shares look pricey at the moment.
- 10 stocks we like better than Intel ›
Shares of Intel (NASDAQ: INTC) shot up 21.5% in May, according to data from S&P Global Market Intelligence. Investors are clamoring for any stock associated with computer chip manufacturing used for the artificial intelligence (AI) revolution. Once considered a loser because of AI, Intel’s manufacturing expertise is increasingly in demand, leading investors to flip the momentum in the opposite direction.
Intel stock is up 452% in the last twelve months as of this writing on June 3rd, 2026. Here’s why the stock was rising in May, and whether now is the best time to get in on the party.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Massive semiconductor momentum
Semiconductors and computer chips are vital for AI, but their use cases have evolved in recent years. In the early days, training AI software required using what are called graphical processing units (GPUs), which is what led Nvidia to become the largest company by market cap in the world.
Now that processing needs are shifting to consumers and enterprises using AI software, there is greater demand for traditional central processing units (CPUs), both on devices and in the cloud. Intel has been a leading player in CPUs for decades and should benefit from this trend. Revenue has finally begun to grow for the beleaguered giant, up 7% year-over-year last quarter.
Forward-looking indicators seem promising as well. Intel has a rumored deal with its upstart foundry competitor with Apple, one of the largest purchasers of semiconductors in the world. Cloud providers such as Microsoft and Amazon are also working with Intel, either purchasing branded Intel chips or planning to utilize Intel’s foundry for their own computer chip designs.
What’s more, Intel now has full backing from the United States government, becoming a shareholder last year. This makes Intel a national champion and relieved investor concerns over the company’s potential survival through the tumultuous AI era.
Image source: Getty Images.
Should you buy Intel?
After rising almost 500% in the past twelve months, Intel now trades at a market cap of $563 billion, making it once again one of the largest companies in the world. It is no Nvidia with a $5 trillion market cap, but there is clearly optimism around Intel today.
This may limit forward return expectations for anyone buying the stock today. Intel trades at a price-to-sales ratio (P/S) of 10. The last time it traded at this multiple of sales was the dotcom bubble, which was a precursor to terrible stock performance over the next 20 years. Don’t let the same mistake happen to you. Avoid buying Intel stock after its miraculous performance over the last twelve months.
Should you buy stock in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $449,393!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 3, 2026.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Intel, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
