Intel Stock Just Keeps Soaring. Is It Too Late to Buy?

Core Viewpoint - Intel's stock has experienced significant growth due to political support and improving business fundamentals, indicating a potential turnaround for the company [1][2]. Group 1: Political Support - Recent political backing from the U.S. government has provided Intel with a substantial cash infusion and a signal of strategic importance, as evidenced by the government's purchase of 433.3 million shares at $20.47 each, representing a 9.9% stake [2][3]. - Public endorsements from political figures, such as President Trump praising Intel's CEO, have positively influenced investor sentiment and contributed to stock price increases [4]. Group 2: Business Performance - Intel's third-quarter results showed a revenue of $13.7 billion, marking a 3% year-over-year increase, alongside improved gross margins and reduced operating expenses, which pushed the operating margin back into positive territory [6]. - The company reported that current demand is outpacing supply, with expectations for this trend to continue into 2026, highlighting a positive outlook for future performance [6][8]. Group 3: Market Position and Valuation - Intel's stock price has more than doubled since the government's purchase, now trading above $45, which raises questions about whether it is too late for new investors to enter [3][9]. - The market is currently pricing in a successful turnaround for Intel, which may limit potential upside and increase downside risk for new investors [9][11]. - Despite the risks, Intel's long history and strong customer relationships position it favorably, provided the company can improve execution and capitalize on growth opportunities [10].