Intel Corporation (NASDAQ:INTC) has resumed its upward move after a rough November for the chip industry. As I stated in a previous article, Intel has turned its focus away from the PC market back to the leading edge of modern technology.

INTC stock took a hit along with its competitors. However, after taking a comparatively minor hit, Intel is again poised to assume a leadership role in the technology industry and take the stock along with it.

Tech Leadership Is INTC’s Mission

The semiconductor industry as a whole took a hit when Morgan Stanley reported that the shortage in NAND memory was coming to an end.

Advanced Micro Devices, Inc. (NASDAQ:AMD), Qualcomm, Inc. (NASDAQ:QCOM), Micron Technology, Inc. (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA) all saw steep declines. Intel did not completely escape this trend, but the INTC stock price saw a more modest decline.

A mild reaction to bad news bodes well for investors. Moreover, Intel intends to produce the technology to back up its reputation. In an internal memo recently, CEO Brian Krzanich said he’d do whatever it takes to remain at the forefront of technology.

This INTC news reinforces the company’s commitment to compete in artificial intelligence (AI), virtual reality (VR), self-driving cars and the Internet of Things (IoT). Buying companies such as Altera, Mobileye, Movidius and Nervana reinforce this drive to keep the world running on Intel chips.

In addition, Intel also stands well-positioned financially to resume its role in the tech industry. Intel has large reserves of cash to purchase companies as well as the drive to participate in newer tech markets. These advances bring welcome news to investors, many of whom wrote off Intel as the company clinging to its PC business.

Despite the growth, the company’s price-to-earnings (PE) ratio stands at 16.5 at the current INTC stock price. Of all its major competitors, only Micron carries a lower PE. The other companies have more than double the PE if they have one at all.

Growing Revenues for Intel

Revenue growth has also shown signs of life. Over the last five years, revenue has only grown at around 2%. However, in 2017, its Client Computing segment, which still accounts for over half of Intel’s revenue, has shown revenue growth at well over 2%.

Its IoT and memory solutions groups account for just over 10% of overall revenues. That’s likely to change as IoT grew by 23%, and memory solutions increased by 37% on a year-over-year basis in the third quarter. As these groups become an increasingly larger share of Intel’s revenue, overall revenue growth should grow with them.

Also, investors should not write off the PC market. This market is not going away. While PC use has experienced a reduction, even the shrinkage has begun leveling off.

The days of PCs serving as a major growth driver for INTC stock have likely ended. Still, I write my stories on a laptop computer powered by Intel chips. I’m certainly not going to write on a smartphone or tablet. Most other office workers feel the same about their work.  Hence, the PC market will still provide Intel a base of stability.

Final Thoughts on INTC Stock

Intel’s transition from the leader of a shrinking industry to being on the forefront of today’s technology has resumed. After a report of NAND memory shortages coming to an end, INTC stock corrected. However, it has now resumed its growth, and the current leadership at Intel has made it its mission to return the company to the cutting edge of the tech boom.

With a strong presence in IoT, AI, and memory solutions, it is on its way to returning to the higher growth levels of previous decades. Signs have also emerged that the PC market will stop shrinking. Best of all for investors, Wall Street has not fully caught on to Intel’s comeback yet. If one wants a low-valuation equity in a cutting-edge tech company, they should look no further than INTC stock.

As of this writing, Will Healy is long MU stock.