Intel (NASDAQ) stock has had a difficult few years. It really fell behind the rest of its competitors.

It may be a bad idea to invest in tech companies that are playing catchup or don’t have the most cutting-edge technology. Intel stock is priced at a modest price, and has a low bar to reach.

Intel made efforts to maintain the company’s momentum despite continuing COVID-19 pressures. Despite this, I am inclined to stay neutral as the competition is very tough. (See INTC stock charts on TipRanks)

Competitive pressures could really pick up over the coming years, as AMD (AMD) continues to gain momentum, while other tech giants, such as Apple (NASDAQ:), opt to ditch Intel CPUs to build their own.

The main reason Intel was bought is its low multiple. If there isn’t an ambitious plan or competent management, a low price-to earnings multiple like Intel shares, which trade at 12.1x trailing earnings, doesn’t matter.

Intel may be on the verge of a new chief executive officer, Patrick Gelsinger.

Intel’s Plan

After fluctuating for years around a fairly wide channel of consolidation, Intel needs a spark.

It has a plan that can bring it back to the top by 2025. Intel provided more information about their plans late in July. Some of the innovations were quite remarkable. Although Intel may not be able to regain the lead within four years, they can close the gap significantly.

In terms of the nanometer process, the race to the bottom seems to be happening when it comes to CPUs. Intel’s 10nm chip doesn’t seem too appealing with Apple’s 5nmM1 chips on the market.

But these numbers do not tell the entire story. Intel’s 10nm chips hold their own against AMD’s 7nm.

Wall Street’s Take

According to TipRanks’ consensus analyst rating, INTC stock comes in as a Hold. Nine Buys, Ten Holds, Seven Sells are the 26 ratings of analysts.

The average INTC price target is $61.14. The average price target for INTC shares is $61.14.

Bottom Line

With a 2.6% dividend yield, Intel is one of those contrarian value stocks that will reward investors for their patience.

Intel has a clear roadmap that will allow it to return to its former position as a major player in the hardware market.

It is unclear if Intel management will be able to push it along that path.

Disclosure: Joey Frenette was a shareholder in Apple shares at publication.

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