This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

If You Like Apple, You Should Love These Chips

NEW YORK ( TheStreet) -- When it comes to chips, snack food giant Lay's has always reminded consumers that "You can't have just one."

This year, I'm realizing that it is also true in the semiconductor industry as the constant battle for chip supremacy unfolds. As enamored as I have become with embattled leader Intel (INTC - Get Report) in anticipation of a resurgence in their business and stock price, I am equally intrigued by the prospects of a few other names, for no other reason than their exposure to tech giants Apple (AAPL), Google (GOOG) and Microsoft (MSFT) as these rivals are gearing up for an all-out rumble for the mobile devices market.

That is not to suggest they wouldn't be ideal holdings otherwise. That fact doesn't hurt either.

When it comes to chips, there are several ways to play -- particularly when considering that some names such as Qualcomm (QCOM - Get Report) and ARM Holdings (ARMH) present better advantages than others by having greater real estate inside Apple devices as opposed to a name such as Atmel (ATML).

However, where Atmel or even a giant such as Texas Instruments (TXN) may fall short on device exposure, they more than make up for it in other aspects of their businesses.

Regardless, the underlying premise remains acquiring value and seizing an opportunity that may not be immediately apparent. For example, there is no question that the mobile device market is on the rise. And on the flipside, the PC decline is real -- albeit not as drastic as previously thought. For investors, the way to play the shifting market is to try to understand which chip players will be better positioned to produce market-beating performances.

More than one can win. We saw evidence of this at the height of the PC industry when Intel rode the coattails of Microsoft to become one of the most valuable companies in the world. Even today it still owns 80% of the PC chip business.

However, during its reign, names such as Advanced Micro Devices (AMD - Get Report) as well as Nvidia (NVDA - Get Report) became success stories in their own right. An argument can be made that Broadcom (BRCM - Get Report) was once as dominant as Intel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMD $2.58 0.00%
BRCM $43.59 0.00%
INTC $32.47 0.00%
NVDA $22.20 0.00%
QCOM $67.12 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs