Intel and TSMC currently exhibit a significant valuation gap, sparking debate among market analysts over divergent financial metrics. On a forward price-to-earnings basis, Intel trades at a higher premium than TSMC.
Analysts attribute Intel's elevated P/E ratio to temporarily depressed earnings caused by massive investments in its foundry business. Conversely, Intel trades at a steep discount to its Taiwanese rival when measured by price-to-book value.
These valuations reflect contrasting market positions and corporate trajectories. TSMC maintains its status as the dominant foundry leader with a proven execution record, high profitability, and robust growth forecasts.
Intel is currently executing a capital-intensive turnaround plan to reclaim manufacturing leadership and expand foundry services for external customers. This strategy has resulted in GAAP-basis losses and flat revenue for the U.S. chipmaker.