The last earnings review for Intel was not kind. The sale of its memory business contributed to a massive decline of around 11% in its share price. Seemingly out-smarted by AMD and NVIDIA, the chip-maker seems to have fallen foul of Wall Street.
Is the company one of the most undervalued ‘Quantum’ companies? It is the only chip maker conducting research in Quantum Computing.
Revenues from Intel also declined. More of us are using technology as we work from home. But, it appears that Intel’s revenue decreased by 4% because buyers found competitors’ offerings more compelling. On Friday, the share price declined by around 11%. This decline is considerable because the price-to-earnings ratio is very low (very inexpensive). The P/E ratio is under nine. Compared with heady P/E ratios of 160 for the likes of AMD for example.
Intel still makes chips that power many of the devices we use. However, what sets this company apart is its engagement in research into quantum computing. Shareholders may think of this as a ‘folly’ as its main market declines. Other shareholders may see this as a smart bet.
We are encouraged to see Intel’s efforts. We think the company can represent a cost-effective way for investors to get a piece of the Quantum Investment pie.
You can read more about what Intel gets up to with its Quantum efforts. These efforts involve superconducting qubits and its 49 Qubit Tangle lake processor.
