Intel shares have surged 88% this year, with the stock more than tripling over the past 12 months. The chip maker's market capitalization now approaches $350 billion, reaching levels not seen since 2000 when it dominated semiconductor design and manufacturing.

The company currently trades at 130 times projected earnings, far exceeding the 60x multiple briefly touched during the dot-com bubble peak. This valuation suggests investors may be pricing in a complete turnaround that Intel has yet to achieve.

While a shift in the AI market provides Intel with tailwinds, the stock's dramatic rise appears disconnected from the company's actual operational progress. Investors should question whether current prices reflect realistic expectations for Intel's recovery strategy.