Lates News

After months of volatility, Intel's stock finally rewarded the patience of the bulls. However, 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 twenty years ago. It is reported that the US government is in talks to invest in Intel, and SoftBank Group will buy $2 billion worth of shares. As a result of these news, the struggling chip manufacturer's stock price has risen by 28% this month, with the market value increasing by approximately $24 billion. Data shows that Intel's stock price is now trading at 53 times the expected earnings for the next 12 months, the highest level since early 2002. "This stock now looks incredibly expensive," said Wayne Kaufman, chief market analyst at Phoenix Financial Services. "Such a high price-earnings ratio is a bet that the government will heavily promote Intel and eventually make it a winner."