Some folks might be hesitant to own shares of Intel (NASDAQ:INTC) because of the global chip shortage. Others may choose to avoid INTC stock because the technology sector seems grossly overpriced.

Those concerns are perfectly understandable. However, I invite you to consider taking a “This, too, shall pass” attitude towards the semiconductor supply issue.

And regarding the high valuation of the tech sector, this doesn’t necessarily apply to all stocks. As we’ll see, INTC stock is trading at a surprisingly low multiple.

Besides, there are recent developments at Intel – including a change of leadership – that indicate progress, and a potential share-price comeback.

A Closer Look at INTC Stock

By “share-price comeback,” I’m referring to the hope of a rebound as INTC stock has pulled back sharply since April.

To be more specific, the stock topped out on April 9, at a 52-week high of $68.49. A drawdown was probably inevitable, after a powerful rally during 2021’s first quarter.

Traders who chased after INTC stock near the top, were soon punished. By late August, the stock had declined all the way to $53 and change.

Momentum-focused traders might balk at the idea of buying a stock in a downtrend. On the other hand, value-oriented investors might look at the situation differently.

Currently, Intel’s trailing 12-month price-to-earnings ratio is 11.95. This indicates a real bargain – something that’s hard to find in today’s technology segment.

To quote InvestorPlace contributor Dana Blankenhorn, “The former chip industry leader is now cheap as chips.”

On top of that, Intel pays out a forward annual dividend yield of 2.58%.

Therefore, income seekers can add INTC stock to their portfolios and leverage the magic of compounding to grow their accounts over time.

Changing of the Guard

New leadership can bring new life to a struggling company. This seems to be the case with Intel, which had a CEO change-over earlier this year.

With typical directness, Blankenhorn described how Intel’s previous CEO, Brian Krzanich, “turned out to be one of the worst CEOs of the last decade.”

(It should be noted that Bob Swan briefly served as the CEO of Intel from January 2019 to February 2021.)

Under Krzanich, Intel failed to compete in manufacturing – and shamefully, Krzanich was ousted after a sex scandal.

With that, Intel had to install a new CEO, right before the onset of a semiconductor supply shortage. Could the company dig itself out of this situation?

Thankfully, new CEO Pat Geisinger brings 30 years of prior experience at Intel – and optimism that the company can start a whole new chapter.

According to Intel, Geisinger “was the architect of the original 80486 processor, led 14 different microprocessor programs and played key roles in the Core and Xeon families.”

So Far, So Good

Since Geisinger was installed as CEO in February, he certainly can’t take all of the credit for Intel’s excellent second-quarter 2021 financial results.

During that quarter, Intel exceeded its second-quarter guidance for revenues, earnings per share, and gross margin.

Moreover, the company posted record second-quarter revenues for its PC and Mobileye segments.

In addition, Intel raised its full-year 2021 guidance to GAAP revenues of $77.6 billion as well as  GAAP earnings per share of $4.09.

And more recently, Intel just picked up a major new client.

Reportedly, the U.S. Department of Defense, through the NSTXL consortium-based S2MARTS OTA, contracted Intel to provide commercial foundry services.

This work will be led by Intel Foundry Services, the company’s dedicated foundry business which was launched this year.

The Bottom Line

Blankenhorn’s assessment of Krzanich is harsh, but justified. Intel needed to make a change in its leadership.

So far, the company seems to have picked a winner in Geisinger. This should help Intel’s investors feel more optimistic.

Besides, INTC stock should appeal to value hunters with its low P/E ratio, as well as income seekers with its generous dividend payouts.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.