Intel Is Worth More Than Coca-Cola and PepsiCo Put Together
A chipmaker that lost billions last year now commands a valuation that dwarfs two of the world's most profitable consumer giants, and the math holding that together is razor thin.
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Intel (NASDAQ:INTC | INTC Price Prediction) lost money over the past year, yet the market values it above Coca-Cola and PepsiCo combined. Intel closed October 8 with a market capitalization of $562.65 billion. Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) were worth $552.80 billion together.
Intel’s lead is only about 1.8%. That lead disappears if Intel closes below about $105.21. Intel ended at $107.08, so one down day could erase it.
Beverage Giants Earn the Profits Intel Is Still Chasing
Over the trailing twelve months, Coca-Cola and PepsiCo brought in $148.37 billion of revenue and $25.22 billion of profit. Intel had $57.03 billion in revenue and a $11.29 billion loss.
Coca-Cola’s dividend yield is about 2.42%, and PepsiCo’s is about 4.61%. Intel pays no dividend.
Coca-Cola raised guidance after Coca-Cola Zero Sugar grew 16% worldwide. PepsiCo cut its core EPS growth outlook to 2.5% to 3.5% after core operating profit in North American foods fell 12%.
| Lens | Intel | Coca-Cola | PepsiCo |
|---|---|---|---|
| Growth Engine | Data center CPUs | Zero Sugar, World Cup marketing | International snacks |
| Key Risk | Foundry losses | Squeezed consumers | North American volume |
Terafab Tests Whether Intel’s Foundry Can Win Outside Volume
This spring, Intel joined Elon Musk’s Terafab chipmaking venture. Under the agreement, Tesla (NASDAQ:TSLA) will use Intel’s advanced manufacturing process, and Intel’s chief executive and Musk both reaffirmed that role this week.
A buyer that large confirms Intel’s manufacturing process. Intel Foundry lost $2.1 billion last quarter and brought in only $293 million from outside customers.
A 63x Forward Multiple Assumes Smooth Execution
Intel trades at about 63x forward earnings. A forward multiple divides today’s price by the earnings analysts expect over the next year, so it assumes those estimates come true on schedule.
Coca-Cola trades at 25x forward earnings and PepsiCo at 15x, which is typical for steady consumer businesses. Intel’s average analyst target of $118.05 is above the current price.
Intel hit its 52-week low of $32.89 last November and closed 2025 at $36.90. It reached $142.35 on June 30 and is up about 190% this year. On October 8, Intel fell 5.34% while Coca-Cola rose 2.27% and PepsiCo climbed 3.73%.
What Intel Must Prove to Justify Its Lead
Intel’s valuation leaves little room for error. Data center revenue rose 59% to $6.26 billion, but the share price assumes Terafab becomes committed foundry volume. Picking out the next huge chip winner early is a pattern we reverse-engineered in a free playbook on the traits past tech runners shared before their big moves.
Coca-Cola’s fundamentals look steadier. Unit case volume grew 5%, and operating margin expanded to 34.9%. Guidance rose, and earnings growth and income came without reliance on an unfinalized contract. The Intel case would improve if outside foundry customers sign public volume agreements.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
