Disclosure: I do have a small position (Less than $2,000) in Intel but am looking for some insight from others before I invest more.
Intel has made numerous missteps in the past few years (Intel Optane while a great product ended up only being used in datacenter environments, 10nm slipped for years, until recently their CPU microarchitecture was arguably inferior to AMD's Zen 2) and the list goes on. However they have a new CEO with an engineering background who to me seems to be taking the company in the right direction over the long term. Intel is investing heavily in building new fabs and they claim their 18A node is ahead of schedule, while TSMC has delayed their N3 node. Intel Alder lake is very competitive with AMD's latest offerings and Intel Arc could eventually capture a large part of the GPU market.
The market cap of Intel is currently ~182 billion, with a P/E Ratio of 7.41, and a dividend yield of 3.28%. The stock has been relatively flat since 2018.
By comparison, TSMC who only fabs chips has a market cap of ~468 billion, a P/E ratio of 20.59 and a dividend yield of 1.62.
AMD which designs chips but owns no fabs has a market cap of ~165 billion, a P/E Ratio of 38.14, and no dividend.
Intel has both fabs and designs their own chips yet is only valued slightly higher than AMD? Intel has the dominant market share in Servers, Desktop, and Mobile (laptop) processors, although AMD has been gaining ground. Intel will soon be competing directly with TSMC by fabricating third party chips in Intel's fabs. My question, does the market's bearish sentiment on Intel make any sense? Provided Intel doesn't delay their roadmaps I am finding it very difficult to believe that Intel should be valued at only 182 billion.
Thank you for your insights ahead of time!
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