BOFA: INTEL VALUATION OVERSTRETCHED Bank of America downgraded Intel to Underperform, saying its rally reflects hopes, not fundamentals. The 80B market-cap gain is driven by balance sheet strength and foundry potential, not operational improvements. Intel faces server CPU challenges, no clear AI accelerator strategy, and few options to shed weak units. Current valuation assumes 2027 EPS 42% above consensus—seen as unrealistic. Sum-of-parts valuations are also questioned due to reliance on TSMC and political limits on spinoffs. Partnerships and U.S. support help, but wafer gains are years away. Shares are up ~20% YTD, with limited upside.(*Walter Bloomberg)