Intel Stock Has Rocketed 250% Higher This Year. Is It Too Late to Buy?

Intel stock has rocketed 259% year-to-date, propelled by new foundry deals with Alphabet, SpaceX, Tesla, and Apple, alongside government investment and strong Q1 earnings. The chipmaker has landed manufacturing contracts with four major tech players as it rebuilds its foundry ambitions.

The rally pushed Intel's P/E ratio above 900, signaling extreme valuation pressure. The foundry business remains unprofitable despite rising sales, and the newly announced deals with the four tech giants have not yet generated revenue. The Motley Fool analysis warns the valuation may have run ahead of fundamentals given the manufacturing segment's continued losses.

Intel secured government backing as part of the CHIPS Act push to rebuild domestic semiconductor manufacturing. The combination of federal support and high-profile customer wins drove the triple-digit percentage gain, but profitability in the core foundry operation remains elusive even as top-line sales climb.