I am is bullish on Intel (NASDAQ:). This highly profitable company’s stock trades at a 12.1x forward P/E.

Intel continues to be the market leader in x86 servers and consumer processors. Intel holds 90.5% market share for x86 servers processors. It also owns 77.5% in total x86 processing units sold during Q2 2021.

INTC trades at 22.1% below its 52-week peak of $68.49. (See Intel stock charts on TipRanks)

Big Boost from Windows 11

As the dominant vendor of x86 processors, Intel benefits a lot from Microsoft’s official confirmation that Windows 11 requires Trusted Platform Technology, or TPM 2.0.

Windows 11 on virtualization software such as Citrix, Citrix and Oracle (NYSE 🙂 are also covered by this policy.

Sales of laptops, desktop PCs, and workstations still account for 54.5% of Intel’s $18.5 billion quarterly revenue. Microsoft’s TPM 2.0 requirement for Windows 11 could probably add $2 billion to $4 billion in Intel’s upcoming Q3 and Q4.

Most people do not how to enable TPM 2.0 on their current computers’ motherboard. TPM 2.0 compatible motherboards and processors for older desktop and laptop computers are hard to come by.

TPM1.2 is the most common chip found on the majority of modern processors and motherboards.  

Just Buy New Computers

There are now 1 billion Windows 10 users. Many users want Windows 11’s October 5 upgrade for free.

Loyal Windows PC owners should simply upgrade to TPM2.0-compliant products. Because software updates are not able to make hardware equipped computers TPM1.2 compatible, they cannot be made TPM2.0-qualified.

Windows 11 provides improved performance and security through hardened hardware, as well as integrated Android apps that can be used with Windows 11. It also offers better touchscreen support.    

Invest While INTC is Cheap

Intel is still the No. 1 semiconductor vendor. Its 15.6% market share is not reflected in INTC’s valuation ratios.

Source: Motek Moyen

Intel touts 27 years of increasing dividend payments, while Advanced Micro Devices (NASDAQ:) has never paid dividends to its shareholders. Nvidia (NASDAQ 🙂 started paying dividends small in 2014, but Advanced Micro Devices (NASDAQ 🙂 has never paid them.

Safe Long-Term Investment

Intel’s stock boasts a Piotroski F score of 8. This stock is considered to be a high-value stock. This company’s total cash position is $24.9 billion. The net operating cash flow of Intel is $32.4 billion.

Intel’s short-term assets of $49.4 billion exceed its short-term liabilities of $42.8 billion.

Wall Street’s Take

The consensus among Wall Street analysts is that Intel is a Hold. Based on 9 Buys, 10 Holds and 7 Sells. The average INTC price target is $61.14, implying 15.1% upside potential.

Conclusion

Relative undervaluation, generous dividend payments, robust financial health, and dominant x86 processor leadership are reasons to be optimistic regarding Intel.

Disclosure: Motek Moyen didn’t hold any positions in the securities listed in this article at the time it was published.

​Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks cannot guarantee the reliability, completeness or accuracy of any information. This article is not intended to be interpreted as an offer or recommendation for the purchase or sale of securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks or its affiliates are not responsible for the contents of this article. Any action you take based on the information is your responsibility. TipRanks and its affiliates do not endorse or recommend this link. Performance in the past is no guarantee of future performance, price or results.