Intel Corporation (INTC), Microsoft Corporation (MSFT): WinTel Cracks Apart Again

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What about the Microsoft Corporation (NASDAQ:MSFT) connection? Sure, you can install Windows on these systems, and Windows platforms account for about half of the server market today. But open-source Linux alternatives have grabbed a 23% market share and continue to grow like bamboo shoots, while Windows server sales are plummeting. And it’s hard to see how Intel’s new low-power, highly clustered solutions would benefit Microsoft more than Linux vendors, given that Linux systems tend to excel in exactly these kinds of workloads.

So that’s another wedge driving Intel and Microsoft further apart.

Finally, investors are still mulling over the impact of Microsoft Corporation (NASDAQ:MSFT)’s huge bet on Nokia Corporation (ADR) (NYSE:NOK). The company is buying the mobile-computing division from the Finnish smartphone-maker for $7.2 billion, and it could be a watershed moment in Microsoft’s mobile efforts. Or it could be a huge bust with billion-dollar writedowns to follow in a year or two, if the Nokia Corporation (ADR) (NYSE:NOK) bet doesn’t pan out.

Microsoft investors are not holding out much hope for a positive outcome. Microsoft lost $13 billion in market cap value on Monday, which is almost double the amount being invested in Nokia Corporation (ADR) (NYSE:NOK). Today, downward pressure on Microsoft shares grew as analysts heaped on downgrades and scathing analyses of the stock.

None of this bad news for Microsoft affects Intel Corporation (NASDAQ:INTC).

Two tech giants are walking in different directions — not just today, but in their overall strategies as well. Redmond is betting the farm on mobility; Intel tosses a few chips in that direction but goes all in on dominating servers.

The article WinTel Cracks Apart Again originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund owns shares of Intel, but he holds no other position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Microsoft and Intel. Motley Fool newsletter services have recommended creating a bull call spread position in Intel. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Motley Fool newsletter services have recommended creating a covered call position in Nokia. 

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