Intel (NASDAQ:INTC) stock has kicked off the new year on a solid note, with shares climbing about 11.5% year-to-date. The move followed the company’s CES 2026 presentation, where Intel unveiled its Core™ Ultra Series 3 processors and positioned them as the first AI PC platform manufactured using its 18A process technology.
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Ultra Series 3 will become globally available toward the end of the month, just a handful of days after Intel reports its fourth-quarter and full-year 2025 financial results on January 22. While sales of these new chips won’t be reflected in the upcoming print, the general sense is that Ultra Series 3 will provide an additional boost to the company’s growing top-line momentum.
However, not everyone is convinced the rally has solid footing – and top investor Daniel Sparks is among those urging a more cautious look at the stock here.
“Given the uncertainties in the fast-paced chip industry, we can’t rule out the possibility that the company may stumble in an unexpected way, leading to a stock decline,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Getting down to brass tacks, Sparks emphasizes that what really matters is the interest among potential customers for the new technology. The investor hopes to hear insights regarding the size and scope of Intel’s upcoming orders on the Q4 conference call, noting that it’s tough to have an informed opinion about the prospects for the Ultra Series 3 at present.
Sparks acknowledges Intel’s ongoing turnaround, pointing out that its Q3 EPS of $0.90 was a marked improvement over losses of -$3.88 in Q3 2024 and -$0.67 in Q2 2025. Still, the investor argues that the market has already priced in a recovery, as INTC’s share price has risen dramatically over the past twelve months.
That’s especially the case given the potential for “technological disruption or weaker-than-anticipated demand” to take the wind out of Intel’s billowing sails.
“In short,” Sparks summed up, “Intel is a risky stock at this valuation – one I’ll personally stay on the sidelines for.” (To watch Sparks’ track record, click here)
The mood on Wall Street isn’t much better. With 19 Holds alongside 6 Buys and 5 Sells, INTC carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $39.63 suggests the stock is likely to remain range-bound for the foreseeable future. (See INTC stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.