Intel surged 28% this month, with its valuation reaching levels last seen during the internet bubble period.

After months of fluctuation, the patience of Intel stock bulls finally paid off. But the sudden rebound of the stock also brought a worrying side effect: the valuation is so high that it hasn't been this high since the internet bubble era over two decades ago. It is reported that the U.S. government is in talks to invest in Intel, and SoftBank Group will buy $2 billion worth of shares. Fueled by this news, the struggling chipmaker's stock price has already risen by 28% this month, increasing its market value by approximately $24 billion. Data shows that Intel's stock price has risen to 53 times the expected earnings in the next 12 months, the highest level since early 2002. "This stock now seems unbelievably expensive," said Wayne Kaufman, chief market analyst at Phoenix Financial Services. "Such a high price-earnings ratio is betting that the government will heavily promote Intel and ultimately make it a winner."