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Intel Corporation (INTC), Micron Technology, Inc. (MU): These Chip Makers Have Upside Despite Double-Digit PC Slump

NVIDIA Corporation (NASDAQ:NVDA) is another graphics-chip supplier for the PC market, and constantly grows sales for this segment even when PC sales are declining. NVIDIA spent the last few years increasing mobile processor sales with its Tegra line-up. NVIDIA Shield is a new initiative for the company. Shield is an Android-based handheld game console that was due up for launch, but will be delayed by one month.

Last quarter, NVDIA earned $77.9 million per share on sales of $954.7 million. Analysts had expected revenue of $940.6 million. Looking ahead, Tegra 5 (codenamed “Logan”) will be a big game changer for NVIDIA in the mobile space. Tegra 5 will benefit from research from Project Denver. The project’s initiative is to produce 64-bit chips that combine GPU and CPU functions.

Company share performance: 1 year


NVDA data by YCharts

Foolish bottom line

Chip makers recognized long ago that PC sales are in a chronic decline. The segment still represents a large portion of sales, but the companies are all growing their percentage of sales in hot areas such as mobile devices and game consoles. This is good for investors, because it ensures that growth will continue, while the underlying revenue from the PC market continues to come in. In the off-chance that Windows 8.1 spurs sales in PCs, then the chip makers will have an even better year than expected.

The article These Chip Makers Have Upside Despite Double-Digit PC Slump originally appeared on Fool.com and is written by Chris Lau.

Chris Lau has no position in any stocks mentioned. The Motley Fool recommends Intel Corporation (NASDAQ:INTC) and NVIDIA. The Motley Fool owns shares of Intel. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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

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