Intel: A Great Quarter Doesn't Make It A Good Investment (Downgrade)

Intel Corporation posted a strong Q2, with Data Center revenue up nearly 60% YoY and operating margin rising to 39.5%. INTC’s turnaround is gaining traction, but its valuation remains stretched, trading at a premium to AMD, Broadcom, and Nvidia even on optimistic assumptions. Despite operational improvements and positive guidance, much of the future upside appears already priced in, limiting shareholder yield potential.

I’m downgrading INTC to a Sell, as robust execution is outweighed by an inflated valuation and limited margin of safety.