Perhaps with the introduction of a more appealing operating system by Microsoft Corporation (NASDAQ:MSFT), users will begin buying desktops and notebooks again. This will benefit Intel as revenues are likely to come up. However, it is entirely up to how well the Windows Blue is received.
Therefore, investors should avoid investing in Intel for the time being.
The competition of Intel is not doing well either, but its future may be better
Advanced Micro Devices, Inc. (NYSE:AMD) may have a brighter future. Although its processor chip sales were down according to its most recent earnings report, its future may be great.
Its revenue declined 18% from $1.41 billion to $1.16 billion. Consequently, the company swung from a net income of $37 million, or $0.05 per share, to a net loss of $74 million, or $0.10. One remarkable statement from Advanced Micro Devices, Inc. (NYSE:AMD) is that its revenue segment increased 12% sequentially.
AMD’s future may be sharper since its products will be in the Nintendo Wii, Sony PS4 and the Xbox One. Regardless of the video gamer’s preference with respect to the console they will use, AMD will profit equally nonetheless. AMD just has to focus on delivering improvements to the processor chips, so the concession is kept for the future versions of the consoles.
Also, Advanced Micro Devices, Inc. (NYSE:AMD) achieved a milestone in the processing speeds by unveiling the FX-9590 desktop processor. It is the first commercially available 5 GHz processor on the market. It surely will set higher standards for the next generation of processors.
For these reasons, I believe Advanced Micro Devices, Inc. (NYSE:AMD) may be regarded as a speculative play.
My two cents
The PC industry is without a doubt under huge pressure from tablets. Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) are seeing their revenues decrease substantially, and investors should reassess their investment in these companies. Microsoft may fare better in the future due to the launch of the Xbox One. The unveiling of the gaming console will also benefit AMD. It will provide the chips not only for the Xbox One, but also for the PS4. In brief, Intel is a No, Microsoft is a Maybe, and Advanced Micro Devices, Inc. (NYSE:AMD) is a Maybe-Yes.
The article Why You Should Reassess Your Investment in These Stocks originally appeared on Fool.com and is written by Robinson Roacho.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel and Microsoft. Robinson 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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