Atmel Corporation (ATML), Microsoft Corporation (MSFT), Apple Inc. (AAPL): Why Now Is a Good Time to Sell This Stock

Microsoft has been trying various antics to push sales of Windows 8 devices, such as providing Office 2013 for free to Surface tablet buyers and slashing the price of its Surface RT tablet. These are desperate measures by Microsoft to provide a fillip to Windows 8.

I had expected Atmel to benefit from Windows 8 since it was a new business for it, but with sales of touch-enabled Windows devices not being as great as expected, I think it wouldn’t be right to expect Windows 8 to help Atmel.

However, Atmel is still counting on Windows 8-powered Ultrabooks, backed by Intel’s recently launched Haswell chips. But, I’m not sure if Atmel is right in counting on the Windows side of the portable computing spectrum as Haswell might also be powering Apple Inc. (NASDAQ:AAPL)’s MacBook Pro as rumors suggest.

Apple Inc. (NASDAQ:AAPL)’s laptop offering has been crushing Windows-based Ultrabooks. According to NPD (via CNET), the MacBook Air commanded a staggering 56% of thin-and-light laptop sales in the U.S. through the end of May. The rest were Ultrabooks. Now, the 2013 MacBook Air is powered by Intel’s Haswell and this has helped it achieve terrific battery life. So, with Apple’s laptops already bashing Windows Ultrabooks, I think it becomes quite clear why Atmel shouldn’t expect much from a Haswell-powered Ultrabook.

The bottom line

I have been an Atmel bull so far and I was impressed by the company’s design wins. Even I had thought that the proliferation of Android tablets and sales of touchscreen-enabled Ultrabooks would help it get better. I would still like to believe that thesis, but there are stiff challenges going forward and the fact that Samsung’s next blockbuster product is sometime away means that Atmel has now entered a period of uncertainty.

Keeping these factors in mind, it would be prudent for investors to book their gains and move on to better options as there is not much clarity about where Atmel is headed.

The article Why Now Is a Good Time to Sell This Stock originally appeared on Fool.com and is written by Harsh Chauhan.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Harsh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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