Intel Corporation (INTC)’s Price Is Heading Up

Intel Corporation (NASDAQ:INTC)’s stock price fell by around 21% in the last year. While the popular analysts’ opinion is that Intel Corporation (NASDAQ:INTC) is a hold, let us dig deeper to learn the full story.

Intel Corporation (INTC)

Looking at the price graph below, we can be certain that the stock price is currently below the average trend line. Keeping this in mind, it can be said that Intel Corporation (NASDAQ:INTC)’s price should go up very soon.

To confirm that, let us take a look at the last five-year P/E ratio (TTM) graph of the company. It seems that the stock is already trading quite cheaply compared with three years ago.

Even when compared with its immediate peers, it seems pretty cheap. Marvell Technology Group Ltd. (NASDAQ:MRVL), QUALCOMM, Inc. (NASDAQ:QCOM) and Broadcom Corporation (NASDAQ:BRCM) seem to be trading at valuations far higher than that of Intel Corporation (NASDAQ:INTC). NVIDIA Corporation (NASDAQ:NVDA) does not seem to be in an investor-friendly state, being doubly hit by the decline in PC sales and surging popularity of Intel Corporation (NASDAQ:INTC)’s Ivy Bridge and Advanced Micro Devices, Inc. (NYSE:AMD)‘s Liano processors.

Regarding Marvell Technology Group Ltd. (NASDAQ:MRVL), big-money investors are shunning the company right now. At the end of the fourth quarter last year, a total of 31 of the hedge funds that I track held long positions in this stock, a decline of 11% from the previous quarter. That should give you a hint about the company’s near future.

In short, Intel Corporation (NASDAQ:INTC) seems viable to me at the moment.

Companies Price/Earnings Price/Sales Price/Book
Intel 10.2 2 2.1
Qualcomm 19.9 5.9 3.4
STMElectronics ADR NA 0.9 1.2
NVIDIA 13.9 1.8 1.6
Advanced Micro Devices NA 0.3 3.4
Marvell Tech Group 19.4 1.8 1.3
Broadcom Corp. 27.7 2.2 2.5

Intel is cheap considering that it still owns 8% share of the mobile ICs market as of January (though compared with 52.3% of QUALCOMM, Inc. (NASDAQ:QCOM), it is pretty low though). Additionally, market share of Intel in the PC microchips market increased to 83.3% in Q3 2012, up from 80.6% in the same quarter a year ago.

Meanwhile, for the first time in several years the share of Advanced Micro Devices, Inc. (NYSE:AMD)’s microprocessors on the x86 market dropped to 16.1% from 18.8% in Q3 2011, according to IDG News Service. Market share of Via Technologies was 0.6%. And we can only say that it will rise from here, with Intel’s brand intact in the semiconductors market. Needless to say, this will affect the future P/E ratio of the company positively.