Is Intel a Buy Right Now? Here's What You Need to Know

Added: 2026-05-10

[00:00:00]We have to address this elephant in the room. Is Intel a good investment or should you completely stay away? What's going on guys? It's Ricky and we need to talk about this because although some people view Intel to be maybe a terrible buy, we're all here for the same reason and it's to make money. The question you might be asking is, well, can I still buy Intel and possibly make money in the short term? And the simple answer can be yes, due to market direction and market sentiment. But fundamentally speaking, where is Intel at? That's what I'm going to be sharing with you today. The first thing that I want to highlight is that well, again, since the initial investment from the Trump administration in Intel, taking a 10% stake, Intel is now up $125 per share. That means that from the initial investment of around $20 per share and taking us 10% stake, the US government is now up six times in under a year from what they originally invested. And even on Friday, they announced an additional partnership that pushed Intel even higher. Apple and Intel have reached a preliminary chipm.

[00:01:06]Remember, the idea was simple for Trump.

[00:01:09]Partner up with Intel and we will work with you to bring that manufacturing back into United States. Now, is it going to be cheaper for companies like Apple to work with Intel? Probably not.

[00:01:19]But could there be possibly less restrictions and regulations? Possibly.

[00:01:24]And again, that is a competitive edge for Intel that not many of the other companies offer. Again, I am not here to say that Intel is a good deal because that would just be a complete lie. It's do you buy the story of Intel? And that is now what I want to entertain. Intel is no stranger to volatility. If you look at it on the month time frame, not the week, not the day, the month time frame where every candle represents a month. If we look back to 2000, if we look back to 1990, from pumping to dumping, from pumping to dumping, and even recently 2020, the post-pandemic rally, pumping to highs of 62 to dumping to lows of 20. It is no stranger to volatility. Remember, patterns tend to repeat themselves. They don't always have to. I just want you to be aware that it is no stranger to this kind of volatility, but never has Intel had a partnership like this where they're involved with the US government.

[00:02:30]And can this really turn Intel around?

[00:02:32]You might be like, what really caused this sell-off? I don't know if enough people actually understand. If you jump into Investing Pro, right, it's the first link in the description down below if you guys want to use this software as well. and we click on the pro research, which is one of my favorite features.

[00:02:47]You could see that Intel's revenue, especially recently, has not been good.

[00:02:52]Has not been attractive. Not only is their revenue not attractive, Intel is a business that loses money. It loses $3 billion a year. It makes 53 billion in revenue, but it loses three billion in net income. That's an important thing to highlight. This is a failing business, or it once was. And that's what I really wanted to learn more about. This thing trades at a negative 197x multiple for its P ratio. Why out of every company out there would you want to invest in this one? Could it be it's an underdog story? Can it go from red to robust? And that's what I asked Warren AI. I wanted to learn more about yeah, it's in the red right now when it comes down to what this company is currently doing or was doing before the Trump administration got involved and gave it the competitive edge of the US government being involved. Less restriction, maybe less regulations, bring those manufacturing jobs back into the United States. So then I asked the very simple question with all these new partnerships and all the excitement fundamentally speaking.

[00:03:57]What is Intel's net income expected to be at the end of this year 2026? And it said Intel's net income is expected to hit a bold 5.6 billion by the end of 2026. A jaw-dropping turnaround that marks a dramatic shift from recent losses and puts the chip giant firmly back in the black. I don't know necessarily what back in the black means, but nonetheless, from red to robust, great.

[00:04:24]If it follows through and everything goes according to plan, that is still something you have to take into consideration, right? It's the turnaround story is can it actually follow through with all of the promises that it's making right now and all of the partnerships that it's announced will they actually happen right following up with that is I then wanted to ask okay well after all of that if it all goes according to plan we have to entertain that it can what would Intel's P ratio be with a net income of 5.6 billion at the current valuation. For those that do not know, the current valuation of Intel market cap right now is $627 billion. Remember, we talked about it being at a negative PE ratio right now.

[00:05:18]But if it does turn things around, it goes from red to robust. What does that look like? Well, it goes from a an insane bad ratio to I think now it's going to be right around Yeah.

[00:05:31]and 124 or 12 uh $24.92 it would bring the P ratio to 112. Now is 112p ratio incredibly cheap. No, it would be a lie if anyone would tell you, "Oh, that's cheap." No, it's not.

[00:05:48]Technically speaking, in this chip sector, they're around 25 to 35. Nvidia, which is again the world leader and incredibly profitable, trades at 40 times multiple. But remember, that is why I shared with you. You're buying the story. You're buying the dream. And if you believe in that dream, you're an adult. You have every right to invest and partake in any dream that your heart desires. And I think it's important to understand the outlook, not just for right now, but also for 2026. If things do go according to plan and this AI revolution continues to grow, which is the big idea, right? and you believe in AI and that there won't be any correction and that that this isn't a bubble and that Intel will have its own market share by bringing those manufacturing jobs back into into the United States with all of these strategic partnerships with a lot of these Mac 7 companies then you can entertain the idea that hey although it is trading at a premium especially right now technically speaking 112 isn't insane it's high but it needs needs to follow through with its promises. Cuz remember, we've shared this before. A stock can be incredibly irrational, right? Markets can stay irrational longer than we can stay solvent.

[00:07:06]If people like the story and they see the changes happening and the partnerships present to themselves, that's all great. But it's until disappointment begins to present itself that then market is relentless. And that's when the shifts begin to happen.

[00:07:22]I then also want to show you recent companies, right? Some of the best performing companies last year, which was one of them, HIMS.

[00:07:31]Nothing in comparison to Intel, but really sharp rallies and really strong corrections. One that might be a little bit more similar in the sense of the type of space. Palunteer. Palunteer looked unstoppable until it didn't. It's had a rough 2026 from highs of 207 to the lows of 136. The reason I share this with you is we have to entertain the bare case. Now, let me make this very clear. Sentiment is incredibly bullish for Intel right now. It makes no sense to short it. Just like it didn't make sense to short Palunteer when all it was doing was making higher highs and higher lows and sentiment, price action, and momentum were all in your favor. It wasn't until some disappointments began to present themselves and then profit taking follows and then the irrational valuation and the irrational dream is no longer as supported and that is where you have to be careful.

[00:08:29]So when looking at Palunteer and the highs that it made just imagine all the people that bought up here thinking that the excitement was going to continue and now they're down 32%. And that's while markets are trading at all-time highs, NASDAQ and S&P 500. If markets begin to drop, what do you think is going to happen to Palunteer? It will only drop further. Who's to say it can't go below $100 per share? At that point, it will be down 50%.

[00:08:57]Why am I sharing this? Well, remember this was one of the best performing stocks of last year, but now it's doing terrible. And you see this story happen over and over again. Now we go back to Intel, right? The idea is that semis, semiconductors and all these these CPUs and GPU chips are the big story of 2026 because of AI. And that is the sentiment that is the excitement right now. But it's maybe once that sentiment begins to shift that you might want to be careful with your exposure. You should never be scared of investing in companies or in markets that you believe in. And I'm a big believer in that.

[00:09:42]But now that you've understand the best case and worst case scenario, it's easy to see that there could be more upset for Intel. But is it worth the risk to overlever yourself? That's the difference. Position size management is something that is often overlooked by a lot of beginner investors and traders.

[00:10:02]Well, what exactly does that mean? Well, that means that if you have $10,000 in your trading or investing account, instead of going in with $10,000 and you can see that it might be a little elevated and the risk of downside is a little high, instead of going all in, maybe you approach it in a more calculated way and you have some skin in the game, but not all of it. And instead of going in with 10,000 or 20,000 and using leverage, you maybe go in with 10 or 20%, something where you have skin in the game and if it continues to uptick, you're able to profit from that, but if it begins to sell off, it doesn't devastate you. Right? This is where you can really begin to see and make a difference with your investments by not feeling overleveraged during speculative times. because we've said this over and over before. It's during irrational times that irrational valuations are supported. And right now, I think it'd be very naive for you to say that markets are not rational right now.

[00:11:04]Well, what do you mean? Markets are trading at all-time highs. Yet, we have inflation rising. The labor market's incredibly weak. And the average American is struggling. Oil prices continue to go up. Our economy isn't thriving. a specific sector in the stock market is thriving and that is what's been propping up the markets to all-time highs. But it's if uncertainties begin to present themselves that the companies that are the most overvalued will correct the hardest. But remember there will be signs and we will see the confirmations of reversals. So there's no reason to jump into a short early.

[00:11:42]It's more of paying attention, setting alerts, and if you want to go long, you have every right to do so. But just please be aware of your position size and please consider not using leverage.

[00:11:59]At the end of the day, you're an adult.

[00:12:00]You can do whatever it is that you want.

[00:12:02]But I just think that when you begin to do the math and ask yourself, well, how much higher can it go?

[00:12:10]And then you begin to do the math, well, what if it does begin to correct?

[00:12:15]Risk-to-reward, right? This is why for those that are part of our LPP team, we ask you guys to plan out your trades.

[00:12:22]What's the risk-to-reward? Profit potential versus your loss potential. If you have a favorable risk-to-reward, meaning that the profit outweighs the loss by a significant amount, then great, the odds are in your favor statistically speaking.

[00:12:37]But when you begin to take advantage of opportunities where the risk is much greater than the potential reward, sure you can be green for a little bit, but if things begin to turn around, you can then quickly see that, wow, my downside potential was significantly greater than my upside risk. It doesn't really make sense to be too aggressive at these elevated levels. Again, food for thought, right? And again, this risk calculator is available again for our LPP users and that's the second link in the description down below if you want to check that out. Other than that, again, I wanted to do my part in sharing the bull and the bare case. Obviously, there's so much excitement going on right now in the semiconductor space and rightfully so. Momentum, direction, and excitement is all in your favor. But does that mean that you need to be super aggressive at elevated levels? Maybe not, right? You don't need to be afraid to take advantage of opportunities, but you also don't have to be naive and go all in at these elevated levels. Food for thought, right? I appreciate you guys' time. I hope that earned a thumbs up. Please consider subscribing. And if you have anything that you would like to share for me to be able to make a video about in future videos, then all I ask you to do is to comment down below. Like always, let's make sure that we end the year on a green note. Take care team.