Intel shares, despite the drop on Tuesday, are up over 200% in value in just the first four-and-a-half months of 2026. The rally has pushed paper losses for short-sellers past the $12 billion mark, according to S3 partners.
Despite these losses, the short interest in Intel, as a percentage of the company’s float, which is a measure of how many shares have been borrowed to bet against the stock, is near a 52-week high.
“Intel’s almost like a poster child for the momentum trade right now,” said Matthew Unterman, managing director at S3 Partners. “At some point, the momentum’s going to stall.”
Shares of Intel were up 25% last week, the most in a week since January 2000, powered by reports that it had reached a preliminary chip-making agreement with Apple. It is the top performer in the S&P 500 since April, even outperforming Sandisk, whose own shares are up 430% so far this year.
Not just Intel, short-sellers are also targeting stocks like Micron and AMD, who are the second and third-best performers on the Philadelphia Semiconductor index since March. The index itself is up 55% since April, with its 14-Day Relative Strength Index (RSI) hitting the highest level since 2011.
“I would not short any of these stocks,” said Thomas George, a portfolio manager at Grizzle Investment Management, which owns Intel shares. “This is not a sector where glory can be found for a short seller.”
The stock has also surged after the US government acquired ownership stake in the company, while Nvidia made a $5 billion investment last year. Analyst estimates for Intel’s 2026 Adjusted Earnings Per Share (EPS) have more than doubled in just the last month, as per Bloomberg data.
The rally has now made intel the most expensive chip stock in the market and among the 10 most expensive ones on the S&P 500. It now trades at around 100 times forward earnings, the highest ever multiple commanded by the stock, and which is 5x its 10-year average. In contrast, Nvidia trades at 24 times forward earnings.
Joining the bearish calls on Intel are Wall Street analysts, whose average price target of $85 a pop implies a downside potential of 34% from current levels. Out of the 53 analysts who cover the stock, only 17 have “buy” ratings and three have a “sell”.
(With Inputs From Agencies)
