Intel has been a struggling business for a while. While it used to be the pinnacle of both semiconductor and manufacturing and processing chips, that’s no longer the case. Intel splits its business into two primary divisions: processors and its foundry business. <\/p>\n The process business is highly exposed to consumer trends, but it also has a data-centric component. Overall, this business unit just did OK during its last quarter, with revenue rising 9% year over year, boosted by data center demand but held back by consumer products. <\/p>\n The big turnaround focus for most investors is Intel’s foundry business. This segment has lost a lot of clients in recent years, with many clients attracted to<\/a> Taiwan Semiconductor Manufacturing.\u00a0 <\/p>\n However, with a push to increase domestic chip production, Intel was the primary candidate to make it happen. Intel is still working on getting back to its previous heights, but it may have found a new client in Apple, which reportedly agreed to a deal to use Intel’s foundry for some chips. <\/p>\n This is a step in the right direction, but a lot of this turnaround has already been priced into the stock. Intel trades for a jaw-dropping 88 times forward earnings. That’s a very high price for a stock that’s really not growing that fast right now, which means the market has already priced in a major turnaround. <\/p>\n Investors are looking for Intel to return to its 2022-era performance. During that time, it generated nearly $80 billion in revenue while producing nearly $25 billion in profits.\u00a0Should Intel return to that level, it would trade for about 20 times earnings — a reasonable valuation. <\/p>\n We’re still in the middle of the turnaround<\/a>, yet the market has already priced in a full revival. I think that makes Intel’s stock a bit risky, as it could result in a major sell-off.\u00a0I think there are far more attractive AI investments out there, and you may want to consider passing on Intel shares. <\/p>\n We just issued ‘double down’ alerts on 3 stocks \u2014 find out if\u00a0Intel made our list <\/p>\n Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. <\/p>\n On rare occasions, our expert team of analysts issues a “Double Down” stock<\/a> recommendation\u00a0for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: <\/p>\n Nvidia:\u00a0if you invested $1,000 when we doubled down in 2009,\u00a0you’d have $537,140!* <\/p>\n Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,471!* <\/p>\n Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $377,990!* <\/p>\n Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join\u00a0Stock Advisor, and there may not be another chance like this anytime soon. <\/p>\n See the 3 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 27, 2026 <\/p>\n Keithen Drury<\/a> has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: The Motley Fool. There are signs of a turnaround starting <\/p>\n
<\/a> INTC Revenue (TTM)<\/a> data by YCharts<\/a> <\/p>\n