Intel Corp (INTC)

There’s no getting around the fact that Advanced Micro Devices (NASDAQ:AMD) caught rival CPU maker Intel (NASDAQ:INTC) off guard back in 2016.

Largely left for dead, mired in its own irrelevancy, AMD’s CEO Lisa Su hit the ground running with a plan, when she took the helm back in 2014. A couple years later, AMD’s new Ryzen series of processors and impressive leaps with graphics processors and 7 nanometer technology put Intel on its heels.

AMD played a big role in creating the headwind that has held INTC stock since, and a string of uncovered security flaws in some of its older processors did the rest of the work.

No company becomes more innovative and effective than a company fighting to hold onto its leading position in its respective markets though, and Intel is (finally) doing that. Although its 7 nanometer CPUs have been put off until 2021, stop-gap technologies like its Ice Lake architecture are powerful enough compared to similarly priced options, while Intel gets back in the game.

The recent weakness in INTC stock is a chance to step into an underestimated company on the cheap. The trailing and forward-looking price-to-earnings ratios are both just over 11.

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