Its much worse than that. Measuring INTC in PE/Growth or PS/Growth terms, it is hugely overvalued compared to historical norms. The G has collapsed and will never return anywhere near previous levels.
Bumping its pathetic dividend from 0.5% to 3% or so would be a very smart move for INTC. Since it's defacto a mature business, it would be best served by behaving as such.