It is now the third most expensive stock in the Nasdaq 100, and on one specific measure it has just overtaken what Cisco Systems Inc. (NASDAQ:CSCO) looked like at the absolute peak of the dot-com mania.
The stock closed at $113.01 on Wednesday, after a 4.49% session gain that pushed it to fresh all-time highs. Shares are up roughly 200% year-to-date and more than 470% over the past 12 months.
The market capitalization sits above $560 billion, ahead of Oracle Corp. (NYSE:ORCL).
Has Intel gone too far, too fast?
Intel’s Stock Valuation Is Now In Cisco-2000 Territory
Intel currently trades at 108 times next-twelve-month earnings, the third-highest forward multiple in the Nasdaq 100, behind Tesla Inc. (NASDAQ:TSLA) at 184x and Arm Holdings plc (NASDAQ:ARM) at 122x.
That valuation places Intel almost exactly where Cisco Systems Inc. (NASDAQ:CSCO) sat when it briefly became the world’s most valuable company on March 27, 2000.
Cisco that day traded above 100x forward earnings, with a market cap above $500 billion. The Nasdaq Composite peaked just two weeks earlier at 5,048.62, before losing 78% of its value over the following 30 months.
Forward P/E is a useful first lens, but it understates the dislocation.
The more telling comparison is how far the stock has run away from its own long-term trend.
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