Analyst says Intel’s valuation “doesn’t make sense” after chip rally, pointing to NVIDIA, AMD, Micron and Broadcom

A prominent Wall Street analyst is challenging the logic behind Intel’s market valuation after a broad rally in semiconductor stocks, arguing that the numbers do not line up with what investors appear to be pricing in. Gil Luria, head of technology research at D.A. Davidson, made the case during a CNBC “Closing Bell Overtime” appearance that investors should not treat the recent strength in the chip sector as an automatic endorsement of every company’s fundamentals.

In the CNBC segment summarized by Yahoo Finance, Luria framed the issue as a “valuation contradiction” that he believes is being overlooked. The specific concern, as described in the report, is that Intel’s valuation does not “make sense” relative to the broader assumptions markets are making as chip demand and earnings expectations have been moving.

Luria also pointed to other names he said investors could consider instead of Intel. According to the Yahoo Finance account, his list included NVIDIA, AMD, Micron and Broadcom, representing a mix of AI-focused chip leadership, compute and graphics competition, memory exposure, and networking or custom silicon related to data-center infrastructure.

While the report highlights Luria’s valuation critique and the alternative stock set, it does not provide additional, company-specific figures or a detailed valuation framework in the information provided here. It also does not spell out the precise assumptions behind his “doesn’t make sense” conclusion, such as what earnings growth rates or margin levels he believed the current pricing implies.

NVIDIA is often cited in market commentary as a bellwether for AI infrastructure buildouts, particularly because its GPUs and related software stack are widely used in training and inference workloads. AMD is frequently discussed as a rival supplier of compute accelerators and data-center chips. Micron is typically linked to memory demand that rises with data processing and AI workloads. Broadcom is commonly associated with data-center networking and custom silicon used in enterprise and cloud systems. Luria’s mention of these companies, as relayed by Yahoo Finance, fits that broader sector narrative, even though the summary does not include his deeper rationale.

The episode also underscores a recurring theme in semiconductors: stock rallies can move faster than fundamentals, leaving valuation gaps that later become focal points for investors and analysts. A valuation dispute does not necessarily imply a near-term break in fundamentals, but it can announcement that expectations for earnings, product cycles, or competitive positioning may be underappreciated or overestimated.

Still, there are limits to what can be concluded from the available reporting. The Yahoo Finance summary attributes the “valuation contradiction” and alternative-name suggestion to Luria, but it does not include the detailed math, time horizon, or explicit Intel-specific drivers that would let readers fully evaluate whether the argument is about near-term execution, longer-cycle competitiveness, or how the market is discounting risk.

Going forward, market participants will likely watch whether Intel’s stated strategic milestones and performance trends align with, or diverge from, the pricing implied by its valuation. More broadly, analysts’ cross-compare comments like this can move attention across the sector, encouraging investors to reassess whether the market is rewarding the right business models as the industry’s AI and data-center spending continues to evolve.