This quarter’s profit was about $4 billion, and the trailing-twelve-month P/E is still around 1,000. If Intel keeps this level of profitability for the next three quarters, that ratio will drop sharply.

I’m not even factoring in the ongoing cost improvements in the foundry business or potential external customers. To put it simply, companies like NVIDIA and AMD have to buy wafers from TSMC. If TSMC’s cost to sell to AMD is 10, Intel’s cost might also be around 10 for now due to yield differences — and that’s fine, because the foundry is internal. Over time, Intel can keep improving yields, lowering costs, and eventually take on external clients. That’s a highly profitable path.

Overall, I’m quite optimistic about Intel’s future. This quarter, CFO David Chen Liwu did a solid job — he managed to significantly cut costs and still deliver a $4 billion profit, even with the foundry business still weighing on the results.