Intel (INTC) is experiencing a notable resurgence, with shares climbing 76% in 2026, fueled by a series of strategic partnerships and a robust market response. The chipmaker’s recent involvement in Terafab, a chip fabrication initiative led by Elon Musk, alongside a new collaboration with Alphabet to supply CPU chips for its data centers, signals a potential turnaround for the company, which has struggled against competitors like Nvidia and Broadcom.

This rally has added over $100 million in market value and marks nine consecutive days of gains, indicating renewed investor confidence. However, Intel’s stock is now trading at a high valuation of 122 times forward earnings, raising questions about its sustainability compared to peers like Nvidia, which trades at 23 times forward earnings. The upcoming earnings report on April 23 will be crucial for validating this momentum and assessing whether Intel’s recent developments can translate into solid financial performance.

Investors should approach Intel with caution, considering its elevated valuation and the competitive landscape of the semiconductor market. For those looking for exposure to the sector, the State Street SPDR S&P Semiconductor ETF (XSD), which has seen an 18% increase this year, may offer a more diversified option.

Source: fool.com