Intel Is Positioning Itself to Make the Comeback of the Century
In this video I will be talking about why I believe Intel (NASDAQ: INTC) is making its way back to the top of the semiconductor world. Despite its recent struggles and market share loss to AMD and Nvidia, Intel remains the world's number one semiconductor company in terms of revenue. As I mentioned two months ago, I believe Intel is cheap compared to its peers. You can find the video below.
Intel's current P/E stands at 11.5, which means it currently trades at a discount compared to the industry's average of 20 and to closest competitor AMD, which has a multiple of 37. Now, it makes sense for AMD to trade at a premium because it is going through a growth cycle while Intel has been stagnant for years.
But more recently, Intel has announced it will be investing $20 billion in its Arizona facility and $3.5 billion in its New Mexico one. This will allow Intel to build chips for other customers, just like TSMC. As of today, Intel has announced that it has recruited Amazon's AWS and Qualcomm to its "Intel Foundry Services." It might only be a matter of time before many other large corporations start using Intel's U.S.- and Europe-based fabs to build their products outside of Asia.
Source Fool.com
