• Citigroup reiterated a "Sell" rating for Intel Corporation (NASDAQ:INTC), reflecting concerns about its ability to supply Apple with ARM CPUs.
• Intel's stock has seen a significant surge of 95% over the past year, outperforming Nvidia's 28% increase, following a strategic investment shift recommendation.
• The importance of diversified investment strategies and asset allocation is emphasized as the semiconductor market evolves.

Intel Corporation (NASDAQ:INTC) is a leading player in the semiconductor industry, known for its microprocessors and integrated circuits. Despite its strong market presence, Citigroup reiterated a "Sell" rating for Intel on December 5, 2025, with the stock trading at around $42.01. This rating, published by TheFly, reflects concerns about Intel's ability to supply Apple with ARM CPUs.

A year ago, a strategic shift was recommended, suggesting investors reduce holdings in Nvidia and invest in Intel, which was then seen as undervalued. This move was based on the potential rebound in the semiconductor sector. Over the past year, Intel's stock surged by 95%, while Nvidia's rose by 28%, highlighting the success of this contrarian strategy.

Intel's current stock price is $42.03, showing a 3.79% increase or $1.53 gain. The stock has traded between $41.16 and $42.83 today, with a 52-week high of $44.02 and a low of $17.67. Intel's market capitalization is approximately $184.86 billion, with a trading volume of 75.09 million shares.

The question now is whether this investment strategy remains viable for 2026 and beyond. Asset allocation, rather than focusing on individual stocks, is emphasized as a strategic approach. Trefis' wealth management partner in Boston has successfully used asset allocation, achieving positive returns even during the 2008-09 financial crisis when the S&P 500 fell by over 40%.

While Nvidia's performance remains strong, there are emerging signs of weakness. This highlights the importance of a diversified investment strategy, as demonstrated by Trefis' High Quality Portfolio. As the semiconductor market evolves, investors must consider broader asset allocation strategies to navigate potential market shifts effectively.