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Intel Comeback Shows Need for Fair Valuation: ETFs in Focus

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Key Takeaways

  • Intel's rally shows great stocks can lag if bought at high valuations.
  • AI ETFs trade at rich P/Es versus broader markets, raising caution.
  • Lower P/E ETFs like AIQ, DRIV, PNQI offer relatively better entry points.

Intel (INTC - Free Report) is back in the spotlight, trading near fresh highs after finally surpassing its previous peak from August 2000, as quoted on Yahoo Finance. Intel’s recent rally marks its first meaningful breakout since the dot-com era.

While the surge reflects solid enthusiasm around AI and semiconductors, it also highlights how long it can take even a great company to recover from an overheated entry point, the same Yahoo Finance article mentioned.

The key takeaway: a leading company doesn’t guarantee great returns if the purchase price is too high.

Opportunity Cost Investors Often Miss

According to a note highlighted by Brian Sozzi and Deutsche Bank, Intel’s trajectory underscores the concept of opportunity cost, as quoted on the above-mentioned Yahoo Finance article.

Since its 2000 peak, the S&P 500 has ascended roughly 370% — and more than 650% including dividends. Investors who stayed tied to Intel during this period missed out on substantial broader market gains.

Fair Valuation Is Needed

The Intel story shows that it’s not the technology that poses the biggest risk — it’s valuation.So, a fair valuation is needed.  Even the most compelling growth story can become a poor investment if bought at the wrong price.

Inside the Hot Valuation of AI ETFs

The S&P 500 currently trades at a price-earnings (P/E) multiple of 25.41X.The NASDAQ 100 Index trades at a P/E multiple of 33.38X (as of April 24, 2026), as quoted on WSJ. In contrast, the AI segment is red-hot currently.

ROBO Global Robotics & Automation Index ETF (ROBO - Free Report) trades at a P/E of 38.03X. ROBO Global Artificial Intelligence ETF (THNQ - Free Report) trades at a P/E of 43.51X, per WSJ. Global X AI Semiconductor & Quantum ETF (CHPX - Free Report) trades at a P/E of 41.23X. First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT - Free Report) trades at a multiple of 37.04X.

Low P/E Artificial Intelligence, EV & Semiconductor ETFs in Focus

Against this backdrop, below we highlight a few AI, EV and chip-oriented ETFs that trade at a relatively lower valuation.

Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) – 33.68X

The underlying Indxx Artificial Intelligence & Big Data Index is designed to provide exposure to exchange-listed companies in developed markets that are positioned to benefit from the further development and implementation of artificial intelligence technology, as well as to companies that provide critical technology and services for the analysis of large and complex data sets.

Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) – 31.0X

The underlying Solactive Autonomous & Electric Vehicles Index tracks the price movements in shares of companies that are active in the electric vehicles and autonomous driving segments (read: EV ETFs: A Long-Term Winner From Energy Market Turmoil?).

Invesco NASDAQ Internet ETF (PNQI - Free Report) – 29.98X

The underlying Nasdaq CTA Internet Index is a modified market-capitalization weighted index designed to track the performance of the largest and most liquid companies engaged in Internet-related businesses and listed on one of the three major U.S. stock exchanges.

 

 

 

 


 

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