I’ll just say it point-blank. If a retiree asked me which stock he should pour his life savings into, I would recommend Intel (NASDAQ:INTC). Of course, you shouldn’t put your entire account into one stock – but if you had to do that, INTC stock is as good a pick as any.

Currently, automakers and other businesses are freaking out about the global microchip shortage. Personally, I’m taking a “this, too, shall pass” attitude about the semiconductor supply deficit.

While this temporary crisis is happening, though, there’s a window of opportunity to buy INTC stock on sale. As we’ll delve into shortly, the stock is trading at a very reasonable valuation.

Warren Buffett likes to hold stocks forever, so today I’m going to pound the table for a bona fide “forever stock.” Throughout the chip market’s ups and downs, Intel will still be there, offering tremendous value to the loyal shareholders.

A Closer Look at INTC Stock

If you have some spare time, I would encourage you to sift through the sea of technology stocks on the Nasdaq. Pay special attention to the valuation multiples.

Chances are, you’ll be hard-pressed to find a lot of real bargains out there. This shouldn’t be too surprising, as the Nasdaq is hovering hear its all-time highs.

Meanwhile, Intel’s trailing 12-month price-to-earnings ratio is 12.17. This indicates a real bargain – something that’s not easy to find in the technology sector nowadays.

If he’ll forgive me, I’m going to steal a quote from InvestorPlace contributor Dana Blankenhorn: “The former chip industry leader is now cheap as chips.”

At the same time, income-focused investors should jump at the chance to collect Intel’s generous forward annual dividend yield of 2.6%.

So, if INTC stock is still trading in the $50’s when you read this, please feel free to start accumulating the shares.

Heck, even in the $60’s and $70’s, the stock will still be worth owning for the long term.

A Catalyst for the Industry

Suffice it to say that Intel isn’t just sitting idly during the semiconductor shortage crisis.

Indeed, the company is taking proactive steps to address this issue. At the same time, we can confidently say that Intel is putting its money where its mouth is.

Just recently, Intel revealed that it might invest as much as 80 billion euros in Europe over the next decade. The objective of this venture will be to boost the region’s chip capacity.

On top of that, Intel plans to open up a semiconductor plant for automakers in Ireland.

Additionally, Intel CEO Pat Gelsinger asserted that his company will announce the locations of two major new European chip fabrication plants by the end of the year.

Gelsinger suggested that the potentially 80-billion-euro project will be a “catalyst for the semiconductor industry.” Moreover, he even said that it will catalyze the “entire technology industry.”

Computers with Tires

What Gelsinger is saying, might sound bombastic.

Yet, I tend to agree that Intel’s investment in the European automotive-centered microchip market could be a game changer.

I must admit, Intel’s CEO has a flair for colorful language. He’s probably not wrong when he declared that “Cars are becoming computers with tires.”

What Gelsinger meant by that statement, I think, is that the need for microchips in the automotive industry will persist for many years.

And, Intel is clearly preparing to dominate that market, at least in one area of the world.

“The aim is to create a centre of innovation in Europe, for Europe,” Gelsinger explained.

Thus, while other companies are busy complaining about the global chip shortage, Intel is taking bold and decisive action.

That’s the type of business I can recommend without hesitation or reservation.

The Bottom Line

Time and again, I keep on finding great reasons to own INTC stock.

The obvious ones include the generous dividend yield, as well as the stock’s low valuation.

Now, we can add Intel’s bold foray into the European chip-making market.

I encourage you to consider all of those reasons, and find some of your own, as you weigh the many benefits of owning INTC stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.