In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Intel (NASDAQ:INTC) and its primary competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
Intel Background
Intel is a leading digital chipmaker, focused on the design and manufacturing of microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors and led the semiconductor industry down the path of Moore's law for advances in semiconductor manufacturing. Intel remains the market share leader in central processing units in both the PC and server end markets. Intel is seeking to reinvigorate its chip manufacturing business, Intel Foundry, while developing leading-edge products within its Intel Products business segment.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Intel Corp | 805.33 | 2.17 | 3.98 | 3.98% | $7.85 | $5.22 | 2.78% |
| NVIDIA Corp | 46.30 | 38.24 | 24.57 | 29.14% | $38.75 | $41.85 | 62.49% |
| Taiwan Semiconductor Manufacturing Co Ltd | 32.53 | 11.18 | 14.67 | 9.44% | $691.11 | $588.54 | 30.31% |
| Broadcom Inc | 71.91 | 20.01 | 26.06 | 11.02% | $9.86 | $12.25 | 28.18% |
| Micron Technology Inc | 32 | 6.44 | 8.98 | 9.28% | $8.35 | $7.65 | 56.65% |
| Advanced Micro Devices Inc | 119.33 | 6.10 | 11.62 | 2.06% | $2.11 | $4.78 | 35.59% |
| Qualcomm Inc | 32.21 | 8.15 | 4.03 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 34.45 | 10.33 | 10.03 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 66.25 | 4.37 | 13.62 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 134.76 | 15.06 | 25.40 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 28.30 | 4.85 | 8.96 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 29.49 | 5.98 | 5.05 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 25.90 | 13.56 | 18.26 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 39.05 | 4.16 | 2.12 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 18.70 | 2.90 | 5.19 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 128.55 | 20.94 | 35.77 | 7.99% | $0.09 | $0.18 | 272.08% |
| ON Semiconductor Corp | 82.58 | 3.07 | 4.07 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 48.28 | 1.39 | 2.21 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 16.37 | 1.93 | 2.90 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 71.68 | 4.90 | 9.28 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 426.15 | 16.50 | 23.80 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 49.08 | 8.61 | 16.52 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 73.04 | 9.94 | 13.01 | 5.67% | $39.32 | $34.27 | 34.59% |
When conducting a detailed analysis of Intel, the following trends become clear:
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Notably, the current Price to Earnings ratio for this stock, 805.33, is 11.03x above the industry norm, reflecting a higher valuation relative to the industry.
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Considering a Price to Book ratio of 2.17, which is well below the industry average by 0.22x, the stock may be undervalued based on its book value compared to its peers.
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The Price to Sales ratio is 3.98, which is 0.31x the industry average. This suggests a possible undervaluation based on sales performance.
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The company has a lower Return on Equity (ROE) of 3.98%, which is 1.69% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
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The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $7.85 Billion is 0.2x below the industry average, suggesting potential lower profitability or financial challenges.
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The company has lower gross profit of $5.22 Billion, which indicates 0.15x below the industry average. This potentially indicates lower revenue after accounting for production costs.
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The company's revenue growth of 2.78% is significantly below the industry average of 34.59%. This suggests a potential struggle in generating increased sales volume.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Intel against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
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Intel demonstrates a stronger financial position compared to its top 4 peers in the sector.
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With a lower debt-to-equity ratio of 0.44, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
Key Takeaways
For Intel in the Semiconductors & Semiconductor Equipment industry, the PE ratio is high compared to peers, indicating potential overvaluation. The PB and PS ratios are low, suggesting undervaluation relative to industry competitors. In terms of ROE, EBITDA, gross profit, and revenue growth, Intel lags behind its peers, reflecting weaker financial performance and growth prospects within the sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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