Intel's Stock Hits a New All-Time High: Is It Still a Buy?

One of the hottest stocks of 2026 has undoubtedly been Intel (NASDAQ: INTC). It was already coming off a tremendous year in 2025 when its stock price jumped an impressive 84%. I thought it would be due to run out of steam, but it's done just the opposite. In fact, it's found another gear, and it's now up close to 170% since the start of the year.

It's been an incredible run for Intel's stock, which has pushed its valuation up to new all-time highs. The big question right now is, can the tech stock go even higher?

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The company's foundry business is growing, but it's still not profitable

Intel reported its latest earnings numbers in April, which is when the stock really took off this year. To say that encouraging numbers around its foundry business have resulted in some bullishness around the business would be a massive understatement.

The company's revenue for the first quarter rose by just 7%, totaling $13.6 billion. That's not exactly the type of growth that would suggest the stock has proven its doubters wrong and has become a growth machine again. What investors saw as a reason to buy up the stock, however, was its stronger foundry results. Revenue in that area of its business rose by 16%, giving investors hope that Intel can tap into growing demand for chips due to artificial intelligence (AI).

But whether it can do so profitability is arguably the bigger question, and that still hasn't been proven. While revenue from its foundry business improved last quarter, the company's losses from the segment also rose, from $2.3 billion a year ago to $2.4 billion over the last three months.

Intel's valuation has gotten out of hand

While Intel has been making progress in its foundry business, the danger is that with such an inflated valuation, investors are pricing the tech stock as if it will be back to generating strong growth stock again, which is by no means a certainty. Its growth rate has improved, but without stronger earnings numbers, the stock may inevitably give back gains in the future.

Right now, the stock is trading at an astounding forward price-to-earnings multiple of 125, and that's based on analyst estimates for how the company's earnings will look in the year ahead, not simply how it's done recently. Even based on future profits, its valuation is incredibly high.

Intel may have some exciting opportunities ahead due to AI, but investors should tread carefully because at its current valuation, it's effectively priced for perfection.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.