Why Intel Stock Soared 278% In the First Half of 2026

Intel shares rocketed 278% in the first half of 2026 on the back of stronger-than-expected Q1 earnings, accelerating data center revenue, and new partnerships with Apple, Tesla, and SpaceX. The rally marked a dramatic reversal for the chipmaker after years of market share losses to rivals.

The surge has since reversed. INTC has dropped 28% from its June peak as valuation concerns mounted. The stock now trades at a P/E ratio of 904, dwarfing the tech sector average of 34. That extreme multiple suggests the market priced in years of flawless execution on the new partnerships and data center momentum—a bar that's proving difficult to sustain.

The named partnerships with Apple, Tesla, and SpaceX represent potential strategic wins, but investors are now questioning whether the rally outpaced the fundamentals. Data center revenue strength drove much of the optimism, yet the valuation gap versus sector peers has widened to unsustainable levels.