Chip Stocks: Windows 8 Platform Brings New Opportunity for Chipmakers

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(By Becca Lipman. Data sourced from Finviz.)

Microsoft’s long-held duopoly with Intel has come to an end with the unveiling of Windows 8 platforms. The change brings an exciting new opportunity for new chipmakers for the first time and now the race is on to take advantage of Window’s global market.

"Windows 8 will run on both x86 chips and processors based on the architecture created by British chip designer ARM," reports CNNMoney. The company ARM is producing one of fastest growing chipsets in the world owing to their position in the mobile device market. The company feels it has demonstrated quality performance in the areas of battery life and enabling constant connectivity – elements that are essential to the success of Microsoft’s new platform.

Other companies whose chips could be valuable components in Windows 8 platforms include Qualcomm, Texas Instruments and Nvidia.

Qualcomm "says its experience in mobile devices gives the company a running head start over its competition." Texas Instruments is also feeling confident since their chips have previously been used in "high-profile devices like the LG Optimus 3D smartphone, Research In Motion's (RIMM) BlackBerry Playbook tablet and the Barnes & Noble Nook (BKS) Color."

Nvidia feels qualified to enter the arena as well. Their long-standing relationship with Windows as a graphics processing unit maker for PCs will be aided by prior exposure in the notebook market.

As for Window’s prior chip providers, Intel and AMD, the companies are far from worried. By all appearances, according to CNNMoney, the companies are excited for the chance to prove their power in a global market.

"When the netbook first came out, everyone was saying it would be the end of Intel," said Jon Carvill, spokesman for Intel. "But when we started making chips for netbooks, that's when they really took off. The same will be true for Windows tablets."

Interested in analyzing the companies mentioned above? Here is the complete list of stocks mentioned in CNNMoney's article. Click on the stocks to access more information on the company and use Kapitall’s interactive charts.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

List sorted alphabetically.

1. Advanced Micro Devices, Inc. (AMD): Semiconductor Industry. Market cap of $4.98B. Price at closing on 9/16 at $7.2. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). The stock has had a couple of great days, gaining 10.43% over the last week.

2. ARM Holdings plc (ARMH): Semiconductor Industry. Market cap of $12.68B. Price at closing on 9/16 at $28.21. The stock has had a good month, gaining 11.06%.

3. Intel Corporation (INTC): Semiconductor Industry. Market cap of $115.36B. Price at closing on 9/16 at $21.97. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.82%, current ratio at 2.23, and quick ratio at 1.84. The stock has had a couple of great days, gaining 11.52% over the last week.

4. Microsoft Corporation (MSFT): Application Software Industry. Market cap of $227.22B. Price at closing on 9/16 at $27.12. Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 11.68. The stock has had a couple of great days, gaining 5.36% over the last week.

5. NVIDIA Corporation (NVDA): Semiconductor Industry. Market cap of $9.33B. Price at closing on 9/16 at $15.46. The stock has recently rebounded, and is currently trading 14.97% above its SMA20 and 12.39% above its SMA50. However, the stock still trades -11.98% below its SMA200. The stock has had a couple of great days, gaining 11.38% over the last week.

6. QUALCOMM Incorporated (QCOM): Communication Equipment Industry. Market cap of $90.49B. Price at closing on 9/16 at $53.87. The stock has had a couple of great days, gaining 6.88% over the last week.

7. Texas Instruments Inc. (TXN): Semiconductor Industry. Market cap of $32.14B. Price at closing on 9/16 at $27.82. The stock has had a couple of great days, gaining 6.67% over the last week.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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