In recent months, Intel (NASDAQ: INTC) has shown signs of a promising comeback in the semiconductor market, fueling investor optimism as 2024 approaches. The tech giant, which had lost its technical edge in the past decade, seems to have adopted a more competitive mindset under the leadership of CEO Pat Gelsinger.

Gelsinger wasted no time in setting ambitious goals for Intel's resurgence. After assuming the role of CEO in 2021, he aimed to achieve technical parity with rivals by 2024 and claim technical leadership by 2025. The company has made significant progress towards these objectives, evidenced by its recent stock performance and strategic developments.

With the release of its latest offerings, the Emerald Rapids Xeon processors and Meteor Lake mobile processors in December, Intel showcased its determination to reclaim its technical prowess. Although analysts note that Intel's CPUs have yet to catch up to competitors like Advanced Micro Devices (AMD), the Emerald Rapids chip, designed for artificial intelligence inference workloads, demonstrates superior performance in certain areas compared to its AMD counterpart. Additionally, while Meteor Lake's CPU power still lags behind AMD, its integrated GPU (iGPU) shows potential, possibly surpassing the Ryzen 7040 Phoenix.

Intel's foray into the foundry business with Intel Foundry Services (IFS) has also played a vital role in its recovery. As one of the few chip design companies that still manufactures most of its own chips, Intel's pivot into the foundry business allows it to cater to clients concerned about the growing dependence on third-party chip manufacturing, particularly in Taiwan. Clients such as Amazon and the U.S. Department of Defense have already turned to Intel for their manufacturing needs. The company has committed significant investments, including the construction of fabs in Arizona, Ohio, and the E.U., with government subsidies further bolstering these efforts. Moreover, Intel's access to top-of-the-line manufacturing equipment positions it to compete with major players like TSMC in the future.

Financially, Intel has begun to show signs of a turnaround. In the first three quarters of 2023, the company witnessed a 21% decline in revenue, but the decline reduced to 8% when analyzing Q3 figures alone. While Intel reported a loss of $980 million during the first three quarters, the company managed to achieve a net income of $297 million in Q3, hinting at a potential recovery in profitability.

The market has responded positively to Intel's progress, with the company's stock surging approximately 70% in the last year. However, the forward P/E ratio of 48 suggests that the stock's valuation may have been influenced by lagging profits. Nevertheless, when compared to AMD, Intel's price-to-sales (P/S) ratio stands at 4, less than half of AMD's ratio. Additionally, the P/S ratio aligns closely with historical averages, indicating the potential for further stock gains if Intel can achieve positive revenue growth.

Intel's strategic shift under CEO Pat Gelsinger, focusing on regaining technical leadership and expanding its foundry business, has reignited investor interest in the company. While challenges remain, particularly in closing the gap with AMD and halting the revenue decline, Intel's recent technological advancements have garnered attention from customers and competitors alike. Additionally, the emphasis on local chip manufacturing aligns with the growing demand for domestic production, providing a competitive edge. With Intel's ongoing investments and the potential for improved financial performance, investors may find Intel stock worth considering before valuations rise further.

The Motley Fool's Stock Advisor analysts have provided insights into the 10 best stocks to buy now, although Intel did not make the list. However, the Stock Advisor service has a proven track record of outperforming the S&P 500 and offers valuable guidance and stock recommendations to investors.

Disclosure: Will Healy holds positions in Advanced Micro Devices and Intel. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool also recommends Intel and provides options recommendations related to Intel.