Intel Corporation (INTC), QUALCOMM, Inc. (QCOM) & How to Profit From Shifting Trends for Semiconductor Stocks

Another semiconductor play

Advanced Micro Devices, Inc. (NYSE:AMD) is another player that has lost a lot of business because of the decline in PC sales as it’s a chip-producing company for traditional PCs. Its revenue recently fell 21%. Its gross margins fell from 44.8% in 2011 to 22.8% in 2012.

The company looks in bad shape but deals with Microsoft Corporation (NASDAQ:MSFT),Nintendo and Sony should help it to produce steady sales over the next couple of years.

Moreover, Advanced Micro Devices, Inc. (NYSE:AMD) is trying a complete turnaround and its management is working hard for it. It has by now fashioned for itself a reputation of excellent quality and infiltrating innovations in its products. It’s offering is being used in many computers and will further be used more extensively in game consoles in the future.

Presently, Advanced Micro Devices, Inc. (NYSE:AMD) holds in excess of 4,650 patents, and based on company information, most of the major PC providers across the globe rely on AMD’s work.

AMD’s latest technological advancements give investors numerous reasons to be optimistic about the stock. The company’s TurboDock technology that automatically toggles power based on user convention is predicted to be a new trend in mobile computing. It might combine the needs of both tablet users and computer users. In short, a lot is in store for both customers and investors.

Final words

Intel Corporation (NASDAQ:INTC) is a household name and there is no denying this fact. With its outstanding fundamentals and cash balance of $18 billion, the company is well able to finance its capex and dividends. It is spending significantly in its future, and as Intel Corporation (NASDAQ:INTC) has a history of being a market leader in what it does, I have many reasons to believe that the company’s efforts should pay off.

In short, Intel is a good investment for patient long-term investors who can wait a couple of years for the company’s strategies to start delivering. Until then, sit back and enjoy the dividends, which are currently yielding 4.3%.

The article How to Profit From Shifting Trends for Semiconductor Stocks originally appeared on Fool.com and is written by tarun bachhawat.

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