Intel’s 235% Rally to $68.50 Faces Q1 EPS Drop of 92%
Intel shares have surged 235% in 12 months to $68.50, lifting market cap from $85B to $328B after an $8.9B US government investment. Q1 adjusted EPS is expected at $0.01, a 92% drop, with revenue around $12.4B and gross margin under 35%, testing a 92x forward earnings multiple.
1. Stock Rally and Strategic Investments
Intel shares have climbed 235% over the past year, driven by an $8.9B US government stake, a $14B buyback of an Ireland plant, and partnerships with Google and a Musk-backed chip venture. This surge has pushed its market cap from $85B to $328B.
2. First-Quarter Earnings Outlook
Analysts project Q1 adjusted EPS of $0.01, down 92% from last year, with revenue seen at $12.4B and gross margin falling below 35%. This expected decline marks a significant slowdown following a period of rapid gains.
3. Valuation Pressure
At roughly 92 times forward earnings, Intel is the most expensive stock in the Philadelphia semiconductor index. Such lofty multiples heighten downside risk unless the company delivers guidance and results that materially exceed current expectations.