Intel (NASDAQ: INTC) entered August 12 with a gain of roughly 177% for 2026, then added about 5% by midafternoon to trade near $102.50. That is the sort of run that can turn a modest holding into one of the largest positions in a portfolio before its owner has time to reconsider the risk.
Intel is not the only chip winner. Advanced Micro Devices (NASDAQ: AMD) entered Wednesday up about 127% this year, while Broadcom (NASDAQ: AVGO) and Nvidia (NASDAQ: NVDA) were each ahead roughly 20%. The question is not whether artificial intelligence has stopped creating demand for semiconductors. It plainly has not. The more useful question is whether prices, earnings and position sizes still make sense after such different rallies.
For retirees and near-retirees, this is more than a scoreboard exercise. A soaring stock can strengthen a retirement account, but it can also leave too much of that account riding on one company or one volatile industry. Here is where Intel’s new stock sale changes the math, how its valuation compares with its peers and where a partial trim looks more reasonable than a complete exit.
Intel’s $20 Billion Stock Sale Cuts Both Ways
Intel priced 210.5 million new shares at $95 apiece, raising $20 billion before fees. The company expects approximately $19.67 billion in net proceeds, and underwriters have a 30-day option to purchase another 31.6 million shares. Intel’s SEC prospectus says the basic offering will leave roughly 5.25 billion shares outstanding. That means existing owners will hold approximately 4% less of the company than they did before the sale, assuming they do not buy additional shares.
That dilution is real, but so is Intel’s need for capital. Semiconductor factories, advanced packaging and new manufacturing processes require enormous upfront investments. Intel officially said the proceeds are intended for general corporate purposes, which may include capital spending and working capital. It did not earmark the entire sum for a particular AI project or foundry program.
Investors are looking past the dilution because the operating business has improved. Intel’s second-quarter revenue rose 25% to $16.1 billion, its strongest revenue growth in more than 15 years. Non-GAAP earnings were $0.42 per share, although GAAP results showed a $2.16-per-share loss. The new money gives Intel more room to pursue its turnaround, but shareholders still need the resulting investments to produce profitable growth. A large cash infusion does not accomplish that by itself.
These Four Chip Stocks Are Not Equally Expensive
At approximately 3:15 p.m. ET on August 12, Intel traded near $102.50, AMD near $485, Broadcom near $417 and Nvidia near $224. The year-to-date returns through August 11 were approximately 177% for Intel, 127% for AMD, 21% for Broadcom and 20% for Nvidia.
Intel does not have a meaningful positive trailing price-to-earnings ratio because its trailing GAAP earnings remain negative. Based on current prices and trailing GAAP earnings, AMD trades near 125 times earnings, Broadcom near 98 times and Nvidia near 34 times. Those ratios are not perfectly comparable, particularly because acquisition-related accounting weighs on Broadcom’s GAAP earnings, but they still show how much future performance investors are already paying for.
AMD’s business is delivering impressive growth. Its second-quarter data-center revenue rose 107% to $6.7 billion. Broadcom reported that AI semiconductor revenue jumped 143% to $10.8 billion, while Nvidia’s latest quarter produced an 85% increase in total revenue. Nvidia is not inexpensive at 34 times trailing earnings, but its earnings support the share price more clearly than Intel’s currently do.
Retirees Should Manage the Position, Not Guess the Top
A stock that has doubled can become dangerous without becoming a bad company. Suppose Intel or AMD began the year as 3% of a portfolio and now represents 7% or 8%. The investor is taking considerably more company-specific and semiconductor risk, even if nothing else in the account changed. That matters more when regular withdrawals are funding living expenses because a large downturn can force shares to be sold at an inconvenient time.
The SEC’s Investor.gov guidance recommends reviewing investments that have grown beyond their intended allocation. Rebalancing does not require dumping the entire winner. An investor might sell enough to restore the position to a predetermined limit, direct new contributions toward underweight holdings or trim the position gradually.
Taxes also matter. In a taxable account, the difference between the sale price and adjusted cost basis is generally a capital gain or loss. The IRS classifies gains on investments held for more than one year as long term, while gains on investments held for one year or less are generally short term and taxed as ordinary income. Investors who bought Intel during 2026 should check purchase dates before selling. Tax consequences should not excuse an uncomfortable concentration, but they can influence how quickly and from which account the position is reduced.
Where I Would Take Profits
Intel would be my first candidate for a trim, assuming the rally has pushed the position beyond its intended size. The stock entered Wednesday up about 177% for the year, the company is issuing enough shares to reduce existing ownership percentages by roughly 4% and trailing GAAP earnings remain negative. The turnaround may keep working, but the share price is demanding a great deal of future foundry and AI success.
AMD would be second. Its data-center growth is excellent, but a trailing earnings multiple near 125 and a 127% year-to-date gain leave little room for an ordinary execution stumble. Broadcom and Nvidia would be less urgent trims because their 2026 gains have been far smaller and their latest results provide stronger earnings support. Broadcom’s valuation is still demanding, however, and Nvidia’s comparatively lower multiple should not be confused with a low-risk stock.
The iShares Semiconductor ETF (NASDAQ: SOXX) is not an automatic escape hatch. Its official data showed a 65.18 price-to-earnings ratio, a 77.7% year-to-date net asset value return through August 11 and a 0.33% expense ratio. It spreads money across 30 holdings, but it remains a narrowly focused semiconductor fund.
My lean is to trim Intel and AMD when either has grown beyond the investor’s allocation limit, while retaining a core position for continued AI and data-center growth. I would treat Broadcom and Nvidia similarly only when portfolio concentration, retirement withdrawals or personal risk tolerance call for it. The goal is not to predict the exact top. It is to keep one remarkable year from quietly deciding the risk level of the entire portfolio.