NEW YORK (TheStreet) -- With a stock trading at $25 and a price-to-earnings ratio of 9 -- unfitting for a tech giant -- I'm beginning to realize that when it comes to chip-giant Intel (INTC), Wall Street is dealing with a severe case of selective amnesia.When looking at its peers such as Qualcomm ( QCOM) and ARM Holdings ( ARMH), the case to be made is that either Intel is harshly undervalued, or its rivals including Texas Instruments ( TXN) and Nvidia ( NVDA) are trading at inflated valuations -- it can't be both. This is precisely the question that astute investors should be asking following the company's recent second-quarter earnings report.
As great as the quarter was, it didn't appear to add much life to the stock. So now the question is, to what extent can Microsoft's ( MSFT) highly anticipated Windows 8 launch remain as a catalyst for Intel? What's more, investors have been eager to play the PC product life cycle refresh ahead of the launch. It would seem that with Intel having an 80% share of the PC market, this would be a tremendous revenue boost. Whether these expectations come to fruition is not the story. The issue continues to be how to fairly assess the company's current state and where it is likely heading. It does not appear as if the market is expecting a whole lot from Intel and instead has turned its attention to the aforementioned new chips on the block -- namely ARM Holdings, Qualcomm and Nvidia.