Intel

Methodology

Intel's semiconductor business creates highly cyclical earnings tied to PC and data center chip demand while facing massive foundry investment costs. The company's market share losses to AMD and ARM-based competitors reduce pricing power. This calculation is very challenging given cyclical PC markets, competitive position deterioration, and uncertain foundry strategy returns—normalized assumptions about sustainable market share are difficult.

Methodology

Intel often shows low PEG ratios reflecting deep concerns about competitiveness in both PC and data center markets plus massive capital requirements for foundry buildouts. The company's low valuation may represent value if process technology recovers, or appropriately discount structural challenges from x86 architecture losing ground to ARM and manufacturing leadership ceded to TSMC.

Methodology

Intel pays a substantial dividend yielding significantly despite profitability challenges, reflecting historical commitment to shareholder returns. The dividend sustainability is questionable given foundry capital intensity and competitive pressures. PEGY is relevant for income investors but requires careful monitoring—dividend cuts are possible if turnaround execution falters and cash flows remain pressured.