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INTC) owns the PC processor market. Unfortunately for the chipmaker, industry headwinds in the computer business have made its 80% market share in microprocessors look slightly less appealing in the last few years. Intel's revenues dipped in 2012 after a strong showing in 2011, and net margins are on the decline three years running. But that doesn't change the fact that investors are overcompensating their unloading of this tech titan.
Despite the dip in sales, Intel's numbers are massive. The firm generated $53 billion in sales last year, and it turned $11 billion of that into profit. For the $115 billion chipmaker, that's like turning 10 cents of every dollar invested back into profits. That's too low of a multiple for this business. While computer manufacturers see their profits get eaten away from commoditization, Intel's impact has been much more tolerable; after all, eight out of 10 PCs get their processors from Intel.
Intel has an important connection with AT&T: mobile devices. The huge turnover in the mobile device market -- both phones and tablets -- is a huge opportunity for Intel right now. While Intel is the underdog in the mobile space, that just means that there's room for the firm to materially grow its top line. Currently, Intel's dividend weighs in at 3.89%, making it one of the highest-yielding blue-chips in the tech sector.