Intel Corporation (INTC), Advanced Micro Devices, Inc. (AMD): Why Aren’t These Stocks a Good Investment Right Now?

Microsoft Corporation (NASDAQ:MSFT) has realized that this may be a cause for users not migrating towards Windows 8, and it has announced a new update to the OS named “Windows 8.1.” Perhaps with this blend OS between Windows 7 and Windows 8, users might finally buy the new product.

Until that occurs, however, investors should steer away from Microsoft Corporation (NASDAQ:MSFT) as well. This doesn’t mean that the company is doing poorly, it just lacks growth potential at the moment. According to the company’s most recent quarterly earnings report, its revenues increased by 10% to $19.8 billion. Its net income increased to $4.9 billion, or $0.56 per share, compared to a net loss of $490 million, or $0.06 per share a year ago.

This company is diversifying

Advanced Micro Devices, Inc. (NYSE:AMD) has decided to tackle other markets. The chip-maker will provide processors to Sony’s new PlayStation 4 gaming console and Microsoft’s new Xbox One. This should help to offset the decrease in revenue from its PC chips side.

Advanced Micro Devices, Inc. (NYSE:AMD) still has the advantage of providing cheaper solutions for PC processors compared to Intel. Although the processing speeds are not as high, its budget prices are appealing for the low end of the price spectrum.

In brief, investors should expect to see increasing revenues in the first quarter of 2014, since the Playstation 4 and the Xbox One are scheduled to be released by the end of 2013.

AMD reported decreasing revenues in the last quarter, dropping from $1.58 billion to $1.08 billion. Due to lower costs of operation, however, its net loss shrunk considerably from $590 million to $146 million.

My foolish two cents

Intel needs to explore other opportunities because tablets are killing the PC market, especially the notebook section. Microsoft Corporation (NASDAQ:MSFT) is betting heavily on its Windows 8.1 update. If it is appealing enough, I have no doubts that users will migrate towards the new OS. Investors should hold off until there is evidence that points that way, however. Finally, AMD may have an edge over Intel because it will provide the processing chips for the Playstation 4 and the Xbox One.

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.

The article Why Aren’t These Stocks a Good Investment Right Now? originally appeared on Fool.com is written by Robinson Roacho.

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