Why Intel May No Longer Be Your Best Investment Choice

Intel (INTC) has, in recent years, become a subject of considerable concern, as its fortunes in the ever-evolving tech sector have taken a rather grim turn. Despite once commanding the unchallenged attention of investors, its stock has now languished a full 26% lower over the past decade. One might observe that many of its semiconductor peers, including those in the vaunted “Magnificent Seven,” have achieved rather substantial returns in this same period.

One need only glance at Intel’s most recent earnings report to discern that the company faces formidable challenges, largely due to its new CEO, Lip-Bu Tan, who has embarked upon a rather drastic “right-sizing” campaign. With a decided lack of sentimentality, the company has laid off no less than 15% of its workforce. Furthermore, it is divesting itself of its networking and edge business, thereby transforming into an independent entity, ripe for external investment. In addition, one cannot ignore the impairments taken on obsolete equipment, signaling a departure from assets once considered valuable.

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What truly sets TSMC apart is its mastery of advanced chips, defined as those with 7 nanometers (7nm) or smaller. This expertise places TSMC in an enviable position to continue its leadership in the production of chips for the burgeoning AI sector. And as competitors such as Intel and Samsung stumble, TSMC’s position only grows more secure. With a price-to-earnings ratio of 29, TSMC offers an attractive valuation, and its future prospects appear increasingly bright.

In conclusion, while Intel may still be clinging to the hope of regaining its former glory, the savvy investor might do well to look elsewhere—toward AMD and TSMC, two companies whose fortunes are more securely on the rise.

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2025-07-30 17:47

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