Intel stock is currently trading at a level not seen even during the dot-com bubble

Intel's (INTC) blockbuster year is becoming even more notable.

Quick insight: Intel stock is trading above its 200-day moving average by the largest margin in history, surpassing the peak of the dot-com bubble, according to Yahoo Finance AlphaSpace data. The stock is up a sizzling 200% this year.

The 200-day moving average is widely considered the single most important technical indicator on Wall Street. It's calculated by averaging a stock's closing price over the past 200 trading days.

It ultimately represents the long-term trend line that institutional investors, hedge funds, and professional traders use as their north star when deciding whether a stock or index is fundamentally healthy or fundamentally broken. When a stock is trading above its average, it's generally considered to be in a long-term uptrend, which attracts institutional money.

The why: Intel stock has become one of the hottest trades on Wall Street as the chipmaker orchestrates a dramatic comeback.

Investor confidence has reached a fever pitch under leadership from CEO Lip-Bu Tan. The company has greatly improved its next-generation 18A manufacturing process and is shipping its advanced Core Ultra Panther Lake processors. 

"We see core business strength coupled with our expectations of foundry engagements coming to fruition starting 2H26 and into 2027," HSBC analyst and Intel bull Frank Lee said in a note.

The stock has caught an additional tailwind on reports that major tech giants, including Apple (AAPL) and Google (GOOG, GOOGL), are collaborating with Intel to design and build chips in the US. 

Investments in Intel last year from the US government and Nvidia (NVDA) have also helped boost sentiment.

Bottom line: While Intel stock remains in a firm uptrend, it's worth noting that it has sold off sharply since hitting a record high on June 30, fueled by a broader pullback in chip stocks.

A reminder that no stock is immune to the whims of the market, even the red-hot Intel.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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