Intel Is Down By 39% Since June. Time to Buy?

Since its peak close of $140.94 per share on June 22, Intel (NASDAQ: INTC) stock has lost close to 40% of its value. The chip giant surged as it benefited from technical successes and an agentic AI boom that has dramatically increased demand for CPUs.

Unfortunately, even its strongest earnings report in years failed to stem the falling stock price. Knowing that, investors should probably approach the semiconductor stock cautiously.

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The state of Intel stock

Admittedly, Intel stock was arguably undervalued one year ago. Years of underperformance led it to lose its long-held title of the "world's largest semiconductor company" to the likes of Nvidia and Taiwan Semiconductor Manufacturing.

Moreover, CEO Lip-Bu Tan succeeded in areas where his predecessor did not. Much of that success hinged on success with the 18A process node, the 1.8 nanometer class manufacturing technology that makes it competitive with the 2-nanometer mode developed by TSMC.

Furthermore, as previously mentioned, data center growth has led to surging demand for CPUs, which has long been Intel's strength. Such factors have led to growing interest in its foundry services.

Still, the most intriguing part of the story is arguably the fact that Intel stock fell despite incredible results.

In the second quarter of 2026, revenue of $16 billion increased by 25% from year-ago levels. Also, its $1.8 billion in operating profit was well above the $3.2 billion loss 12 months ago, though a $12.5 billion markdown in the value of some shares led to a net loss.

That loss skewed the trailing P/E ratio and left Intel with a forward P/E ratio of 57, which still makes the stock relatively expensive. Also, Intel stock continues to fall, which may discourage buying in the near term.

However, that also makes Intel stock less expensive than its longtime rival AMD, which trades at a forward P/E of 62. That could persuade investors to put Intel back on their radars.

Should I buy Intel stock?

Considering the state of Intel, it may be time for investors to begin buying shares again, but only with a dollar-cost averaging (DCA) approach.

Indeed, it is not a cheap stock, and the downtrend could continue. Such conditions should discourage aggressive moves into the stock.

Nonetheless, the success of its 18A manufacturing technology, the interest in its foundries, and the rising demand for CPUs place Intel on track to again become competitive in the semiconductor space. Such accomplishments should make it a market-beater in the long run.

Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.