It is the same reason companies predicted to have large growth have higher PE multiples. A PE of 6 indicates that the market does not believe Intel will be able

It is the same reason companies predicted to have large growth have higher PE multiples. A PE of 6 indicates that the market does not believe Intel will be able to keep this level of earnings in the future. Here are some of the factors: * Getting beat in manufacturing by TSMC * Competition in X86 infrastructure from AMD * Centralization of the lucrative server market into a few very large players that are fabricating their own ARM based chips (IE AWS gravitron) * X86 no longer having the same moat as ARM mobile domination has made many major libraries,languages and frameworks work just as well with ARM. * Recent track record of failing to respond to such challenges in a competitive way Of course they could turn this around and keep making insane profits, but that is what the market is thinking at the moment.