Intel (NASDAQ:INTC) stock recently hit a new 52-week low as tech stocks have been hit hard due to a gloomy market outlook. Most high-beta technology stocks have plummeted recently due to a fear of yield curve inversion, which is a leading recession indicator. In addition, risk-aversion is causing all kinds of problems, causing many new market participants to run for the hills as a bear market emerges, subsequently causing the market to overshoot to the downside.

Despite the troubled market sentiment, many technology stocks are oversold, including Intel. I’ve had a thorough look at INTC stock’s prospects, leading me to think that it’s a must-own at its current price. Here’s why.

INTC Stock From an Operational Perspective

Global semiconductor demand is still growing strongly. The industry’s latest top-line data reveals a 21% year-over-year increase in April sales. According to Semiconductor Industry Association CEO John Neuffer, “global semiconductor sales have increased by more than 20% on a year-to-year basis for 13 consecutive months, indicating consistently high and growing demand for semiconductors across a range of critical sectors.”

Although supply-chain issues persist, Intel owns a solid market position, as indicated by its gross margin of 54.32% and its return on invested capital of 8.67%. Solid market positioning gives the firm bargaining power over its suppliers, which could see it survive transitory supply-chain hurdles.

Furthermore, Intel exhibits high-quality commercial prospects. INTC still holds 63.5% of the central processing unit (CPU) market share. Despite the abrupt growth of the graphics processing unit (GPU) market, CPUs still represent a market that’s 10 times larger. Furthermore, CPUs have garnered renewed attention lately due to their application in artificial neural networks.

The company recently beat its first-quarter earnings target by 8 cents per share amid achieving key production milestones and product delivery goals. During the quarter, data center sales continued to rise, posting 22% year-over-year growth, network and edge group sales increased by 23%, and Intel’s foundry service revenue more than doubled to $283 million.

Assessing INTC’s Price Level

Intel stock is undervalued after dropping more than 28% since the turn of the year. I decided to utilize a relative valuation approach in my analysis, which accounts for mean reversion. Firstly, INTC stock’s price-to-earnings ratio is at a 33% discount to its 5-year average, suggesting that its earnings per share prospects are underpriced by the market. Moreover, INTC’s price-to-earnings ratio is at a peer group discount of 53%, implying that it’s a significantly overlooked stock.

Another factor that could support INTC stock from here onwards is its dividend profile. The stock sports a forward dividend yield of 3.9% with a dividend coverage ratio of 4.3%, conveying that INTC is a top-class dividend stock pick.

Flimsy markets stimulate demand for high-dividend stocks as investors flee risk-on assets. For example, high-dividend stocks have outperformed the S&P 500 on a relative basis in the past year, conveying investors’ “guaranteed yield-seeking” attitude during trying economic times. Thus, the current market environment could be suitable for Intel stock.

Intel stock is undervalued at its current price. The company owns a solid market share, exhibits attractive dividend properties, and provides innovative solutions. In addition, the market’s overreaction to a possible recession has left the stock oversold at a relative strength (RSI) of a mere 30, suggesting that a lucrative entry point has presented itself.

On the date of publication, Steve Booyens held an indirect long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.