Intel’s AI Stock Valuation Sparks Debate Amid Semiconductor Struggles
Intel trades at a price-to-sales ratio of 2.4, near the bottom of its decade-long range, as the chipmaker grapples with manufacturing delays and lost market share. Once a semiconductor titan, the company now lags behind rivals like Taiwan Semiconductor Manufacturing Co. in producing advanced nodes for industry leaders such as Nvidia and AMD.
The foundry division's missteps have eroded Intel's technological edge and financial performance. Its turnaround strategy—costly and uncertain—has left investors questioning whether the stock is a hidden opportunity or a value trap in an AI-driven market obsessed with premium valuations.