Buy Atmel, Sell Nvidia
There are several ways to play chips with many things to consider -- some presenting better advantages than others. There is no question that the PC decline is real and the mobile device market is on the rise. Understanding which players will be better positioned to produce market-beating performances can be the difference between a thriving portfolio and one that is merely average.
I think if investors look closely enough, there will find that Atmel is certainly a name that is worth consideration -- particularly at such low valuations while it is working hard to get its house in order.
From a fundamental perspective, the stock is trading considerably below its book value. But the challenge for management is to find a way to inspire investors to believe that this can indeed become a good turnaround story.
However, as much as I like Atmel, I will concede that a turnaround is much easier said than done. With Intel due to release its new marketing campaign on the release of Microsoft's(MSFT) Windows 8 operating system and Qualcomm continued dominance in Apple products, Atmel will likely find it difficult to announce its presence absent some solid market-beating performances of its own.