Intel and Advanced Micro Devices shares surge as AI-chip stocks rebound from recent market drawdowns
Intel stock rose 13% to $92.67, while Advanced Micro Devices shares gained 13% to $483.55, reflecting renewed optimism for the semiconductor sector. The rally comes as traders rotate back into former laggards that have shown significant year-to-date growth, with Intel stock up 124% and Advanced Micro Devices stock up 100%. Despite these gains, analysts note a valuation gap between the runners and the incumbents. Intel currently has no trailing 12-month P/E ratio due to a lack of recent profitability, while Advanced Micro Devices trades at a lofty 161x multiple. In contrast, the AI leaders NVIDIA and Broadcom have maintained more grounded multiples. Investors are also tracking the iShares Semiconductor ETF (SOXX), which rose 8% today. The fund provides broad exposure to the sector, including Intel and Advanced Micro Devices, though it carries higher concentration risk than a diversified portfolio. Market watchers are now looking toward upcoming earnings reports to see if the current recovery trade will sustain its momentum.