Intel Stock Is Soaring, Leaving Nvidia Shares in the Dust This Year. But Which Stock Is a Better Buy Today?
2026-04-26 07:03
•Daniel Sparks •The Motley Fool
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Intel's impressive Q1 results and growing AI data center segment show its turnaround is progressing, but the company still faces significant execution risks with its unprofitable foundry business. Nvidia continues to deliver extraordinary growth with 73% revenue increase and trades at a more attractive valuation despite higher absolute P/E ratio. While both stocks carry risks, Nvidia remains the better buy due to its proven business performance versus Intel's turnaround story.
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Publisher: The Motley Fool
Author: Daniel Sparks
Categories: Equities, Earnings, Technology, AI, Semiconductors, Financials
Tickers: INTC, NVDA
Sentiment: Positive — While Q1 results exceeded expectations with 7% revenue growth and 22% data center segment growth, Intel still reported a $3.7B GAAP loss and its foundry business remains deeply unprofitable with a $2.4B operating loss. The stock's 70x P/E valuation is difficult to justify for a company still executing a turnaround with significant risks. Nvidia demonstrates exceptional financial performance with 73% revenue growth, 75% data center revenue growth, and 98% EPS growth. Trading at 42x trailing earnings and 25x forward earnings, the valuation is more attractive than Intel's. The company is already delivering staggering growth, though risks include concentrated customer base and potential AI cycle slowdown.
Keywords: artificial intelligence, semiconductor stocks, AI infrastructure, data center, GPU, CPU, valuation, earnings growth
Insights:
- INTC: Neutral: While Q1 results exceeded expectations with 7% revenue growth and 22% data center segment growth, Intel still reported a $3.7B GAAP loss and its foundry business remains deeply unprofitable with a $2.4B operating loss. The stock's 70x P/E valuation is difficult to justify for a company still executing a turnaround with significant risks.
- NVDA: Positive: Nvidia demonstrates exceptional financial performance with 73% revenue growth, 75% data center revenue growth, and 98% EPS growth. Trading at 42x trailing earnings and 25x forward earnings, the valuation is more attractive than Intel's. The company is already delivering staggering growth, though risks include concentrated customer base and potential AI cycle slowdown.