Struggling chipmaker Intel's US$24 billion rally sends valuation to dotcom levels
Intel Corp bulls are finally being rewarded for their patience. But the stock's sudden rebound comes with a worrying side effect: a valuation so high its most recent precedent is from the dotcom era more than two decades ago.
Shares of the struggling chipmaker have rallied 28 per cent this month, adding about US$24 billion in market value, on reports that the
US government is in talks for a potential equity stake, as well as plans for a US$2 billion investment from
Japan 's
SoftBank Group Corp.
The jump has Intel trading at 53 times profits projected over the next 12 months, the highest since early 2002, according to data compiled by Bloomberg.
'The stock looks incredibly expensive here,' said Wayne Kaufman, chief market analyst at Phoenix Financial Services. 'That kind of multiple is a bet that the government will push Intel so hard on customers that it becomes a winner.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
Trump and Canada PM Carney talk about trade, agree to speak again soon
US President Donald Trump and Canadian Prime Minister Mark Carney had a 'wide-ranging conversation' on Thursday that included trade and the war in Ukraine, according to Carney's office. The two leaders talked about 'trade challenges, opportunities, and shared priorities in a new economic and security relationship between Canada and the US', according to the statement. They also discussed 'how to build on the president's leadership to support long-term peace and security for Ukraine and Europe'. Carney initiated the call, according to a government official who spoke on condition they were not named. The two leaders agreed to speak again soon. A Trump administration official acknowledged the call took place and said the leaders discussed trade, without disclosing further details. 04:27 Trump meets new Canadian PM, who tells him Canada is not for sale Trump meets new Canadian PM, who tells him Canada is not for sale It is the first time Carney or Trump has publicly acknowledged a conversation since Trump raised US tariffs on Canadian goods at the beginning of August.
The Standard
an hour ago
- The Standard
Wall Street closes down as investors brace for Powell's speech
Pop Mart to launch mini Labubu this week as it expects revenue to hit over 30 bln yuan this year
South China Morning Post
2 hours ago
- South China Morning Post
Beijing ‘stands firm' with New Delhi against ‘bully' US, Chinese envoy says
Beijing's top envoy in New Delhi on Thursday expressed strong support for India, citing the steep US tariffs imposed against the country, and called for 'teamwork' and 'collaboration' between the world's two most populous nations in standing up to the 'bully'. 'US imposed tariffs of up to 50 per cent on India. China firmly opposes it. Silence only emboldens the bully. China will firmly stand with India, uphold the multilateral trading system,' Ambassador Xu Feihong said. He said tariffs and trade wars are undermining the very free trade international system the US once benefited from, and accused Washington of wielding tariffs as a 'bargaining chip to demand exorbitant prices from various countries.' He made the remarks at the SCO Summit 2025: Resetting India-China Ties, organised by the Chintan Research Foundation, a New Delhi think tank. The rare show of solidarity comes against the backdrop of a turbulent global trade environment amid US President Donald Trump's aggressive tariff policies targeting both countries. Peter Navarro, a White House senior trade adviser, on Thursday slammed India as 'maharaja' of tariffs that has begun 'cozying up' to President Xi Jinping.
