Intel’s stock price movement
Intel (INTC) stock moves in tandem with the VanEck Vectors Semiconductor ETF (SMH). However, Intel performed better than SMH in the fourth quarter of 2018 on the back of strong earnings results. SMH fell 18.2%, while INTC fell just 0.8% in the fourth quarter. The semiconductor industry bottomed out on December 24, 2018, and then started on a growth spree. Since the start of 2019, SMH and Intel have risen 5.6% and 4.5%, respectively.
Intel stock is currently trading in the middle of its 52-week high and low at $49.0. Wall Street analysts expect the stock to rise to $55 in the next 12 months.
A stock’s valuation is calculated by dividing its fundamentals, such as its earnings, sales, and cash flows, with its current stock price. If we consider the current valuation of Intel stock, it seems like an attractive investment with a PS (price-to-sales) ratio of 3.4x, lower than Advanced Micro Devices’ (AMD) and NVIDIA’s (NVDA) PS ratios of 3.45x and 7.93x, respectively. The PS ratio tells us how much investors are willing to pay per dollar of a company’s sales. Intel’s PE ratio is also lower than AMD’s and NVIDIA’s.
Lower price ratios show that INTC is cheaper than AMD and NVDA but offers investors exposure to the same growth trends of AI and autonomous vehicles. Intel is also developing its own discrete graphics processing unit, which it plans to launch in 2020. The launch should make Intel competitive in the gaming space as well.