Here's Why I Wouldn't Touch Intel Stock With a 10-Foot Pole

Core Viewpoint - The "Magnificent Seven" stocks have garnered significant attention due to the AI boom, but Intel has outperformed them recently with a stock increase of over 148% in the past 12 months, surpassing Alphabet, the best performer among the Mag 7 [1] Group 1: Intel's Stock Performance - Intel's stock has surged primarily due to advancements in its "18A" manufacturing technology, which enhances chip efficiency by rearranging internal structures [4] - The company has adopted a foundry-first approach, focusing on a single strategy to compete in the semiconductor industry, which is seen as both ambitious and necessary [5] Group 2: Competitive Landscape - Intel faces challenges in competing with Taiwan Semiconductor Manufacturing Company (TSMC), which is preferred by many tech companies for its scale and reliability [6] - Intel has experienced yield issues, making TSMC a safer choice for companies that require consistent chip performance [7] Group 3: Valuation Concerns - Intel's current valuation is high, trading at 88.7 times its projected earnings for the next year, which is considered expensive compared to peers like Nvidia (39.4), Microsoft (27.4), and Meta (21.5) [7][8] - The premium valuations of Nvidia, Microsoft, and Meta are justified due to their strong earnings and established business performance [8]