Intel's Stock Just Did Something It Hasn't Done Since 2022

Core Viewpoint - Intel has faced significant challenges in the semiconductor market, particularly in the context of the AI revolution, but there are signs that the stock may be poised for a rebound [1][2]. Group 1: Stock Performance and Valuation - Since the introduction of ChatGPT on November 30, 2022, shares of Nvidia and AMD have surged by 721% and 83%, while Intel's shares have declined by 25% during the same period [1]. - Intel's price-to-sales (P/S) ratio bottomed around 1.5 between August and September 2022, a level not seen since then, suggesting a potential turning point for the stock [3][4]. - Following the P/S ratio's low in late 2022, Intel's stock experienced a significant rise throughout 2023, although it has since retraced to lower levels in 2024 [4][5]. Group 2: Potential Catalysts for Rebound - The CHIPS and Science Act, signed into law on August 9, 2022, has positioned Intel as a major beneficiary, with the company receiving tens of billions in grants and loans [6][7]. - Despite the delays and potential reductions in funding amounts, the optimism surrounding the CHIPS Act and AI-driven market demand could support a recovery for Intel [8][9]. - The upcoming change in leadership, with CEO Pat Gelsinger's retirement, may also provide a fresh perspective and direction for the company, which has seen a total return of negative 53% during his tenure [10]. Group 3: Investment Outlook - While there are signs of a potential rebound, the current investment sentiment towards Intel remains cautious, with the need for more concrete evidence of progress before fully committing to the stock [11][12]. - The combination of CHIPS Act funding, a new administration focused on domestic manufacturing, and leadership changes could create a favorable environment for Intel moving forward, particularly as 2025 approaches [12].