Has Atmel Corporation (ATML) Become the Perfect Stock?

Atmel makes microcontrollers that enable touch screens to function. Clearly, that’s been a huge growth industry lately, as smartphones and tablets have revolutionized the computing industry and rely almost exclusively on touch-screen input. But Atmel lost out on lucrative MacBook, iPod Touch, iPhone, and iPad business to Cypress Semiconductor Corporation(NASDAQ:CY) and Texas Instruments Incorporated (NASDAQ:TXN), and that combined with weakness in Android tablet sales left Atmel hitting new lows.

Yet as Fool tech expert Evan Niu points out, Atmel has superior technology to Cypress and Synaptics, Incorporated (NASDAQ:SYNA), and the company has had some success in getting into products like the new Surface tablet and some Ultrabook offerings, as well as many Samsung phone lines. The sticking point is cost, where Atmel isn’t the low-price provider, but for higher-margin products, the odds are better that mobile-device makers will pay up for quality. That’s likely the case with Samsung’s top-of-the-line Galaxy S IV, where Synaptics is the main rival but where Evan expects Atmel to retain its position within the phone.

Earlier this month, Atmel gave disappointing guidance for the current quarter. Even as the new Windows 8 operating system makes touchscreens more common, Atmel doesn’t expect sales to reach as high as what analysts had expected. With a sluggish overall semiconductor market, it’s hard for Atmel to reach its full growth potential even with its promising microcontroller business.

For Atmel to improve, it needs to keep scoring wins in the touch-screen market, especially as new players seek to distinguish their products from existing mainstays. If Atmel can make the most of its technological advantages, it could claw back toward perfection in the years ahead.

The article Has Atmel Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Cypress Semiconductor.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!