Should You Buy Intel Stock After a Nearly Fourfold Year?
Data center profits have nearly quadrupled. But is that enough to support the stock's new price?
Overview
Two things at Intel (NASDAQ:INTC) have nearly quadrupled over the past 12 months. One is the quarterly operating income of the chipmaker's data center business. The other is its stock price, which trades near $96 as of this writing, up from a 52-week low of $24.05 and about a third below the high of $142.35 it set in late June.
The rally has lifted Intel's market value to about $500 billion -- this for a company that lost $11 billion on paper in its most recent quarter. And the price is about 47 times what analysts think the company can earn next year.
Details
The business is improving faster than it has in years. I just don't think it has improved as fast as the price.
Source
Originally published at www.fool.com.