We recently compiled a list of the 10 Undervalued Chip Stocks Near 52-Week Lows. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against the other undervalued chip stocks.
Energy and EV stocks continue to be in focus as Donald Trump signs a bunch of executive orders that will have far-reaching impacts on many industries. He even revoked an executive order related to AI, though it addresses a matter that may not directly impact a company’s sales in the near term. AI stocks are going under the radar for a few weeks but with earnings season about to get into full gear, we may not have the same opportunities in a couple of weeks that we have now.
Many of the chip stocks continue to stay undervalued. The main reason is the lack of demand in the niche industries that these companies serve. But this demand will eventually shift at some point in 2025, which is what makes them so attractive to consider at this point.
We came up with 10 stocks that we believe are undervalued, near their 52-week lows, and present good investment opportunities. To come up with the 10 undervalued chip stocks that are near 52-week lows, we only considered stocks with a market cap of between $10 billion and $200 billion that hit their 52-week lows recently.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
A technician soldering components for a semiconductor board.
Intel Corporation (NASDAQ:INTC)
Intel stock continues to be volatile, though the long-term downtrend has destroyed most of the shareholder value. The company is almost always in the news for negative reasons. Most recently, it was the ouster of CEO Pat Gelsinger that has caused investors a lot of grievances. Intel’s long-term resurrection plan wasn’t going anywhere and the board had to do something quickly. In the end, the CEO had to pay.
Amidst all these negativities, the stock is reeling close to its 52-week lows. Expectations from the company are low. Investors are content when there is no negative news. With Q4 earnings just around the corner, the company’s restructuring and even a potential sale would be talked up again.
In the previous quarter, only the Data Center and AI segment and the Network and Edge segment showed growth. Everything else went downhill, including the 44% decline in Altera. With the company cleaning up its books in the third quarter, it is quite possible that the stock has already bottomed out. 2025 could be a great year for the stock considering how low it has gone in the last year.
Overall INTC ranks 4th on our list of the undervalued chip stocks near 52-week lows. While we acknowledge the potential of INTC as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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