I was looking at the various chip makers to see how they compare to each other and especially NVDA. Intel has had a few rocky quarters in mid 2022 to mid 2023, but it seems like they could be also on the verge of a turn around. They recently signed a 15 billion dollar deal with Microsoft, and they're currently in negotiations to make chips for the US military.
Key stats for NVDA
- Yearly Revenue: 44.87B
- Net Income: 18.88B
- PE Ratio: 80
- Net Assets/Shareholder Equity: 33.3B
- Market Cap: 2.38T
Key stats for INTC
- Yearly Revenue: 54.23B
- Net Income: 1.69B
- PE Ratio: 114
- Net Assets/Shareholder Equity: 110B
- Market Cap: 195B
Effectively what this means is that Intel has more revenue, more shareholder equity, and 1/10 the market cap of NVDA. Their profitability took a huge hit in 2022, but their most recent quarters have seen them return to net positive. A bet on NVDA at this point seems to be a bet on continued parabolic growth and long term sustainability of their insane profit margins. On the other hand, it seems like Intel is undervalued and poised as a possible underdog to step up and take some market share. If the chip sector continues its rally then it seems like INTC could be a good bet. If the entire chip sector crashes and burns, Intel's potential downside is very low, with their stock price only 77% above book value.
Does anyone have any information on Intel and why it might be so undervalued in comparison to other semiconductor stocks?
