Tech Stocks Challenged by Transition

Includes: INTC, MSFT, NVDA
by: BlindReason

I've had a few posts on Intel (NASDAQ:INTC) and why it should be sold (it dropped for other reasons), but generally any business that is based on the X86 architecture is in trouble. Intel, Microsoft (NASDAQ:MSFT), Dell (NASDAQ:DELL), Asian PC makers all face challenges on moving to a new architecture of simpler reduced instruction chips that consume far less battery for a given amount of power.

Intel has not moved quickly enough (yet), and Microsoft has even more challenges than Intel does. Nvidia is a short position I've closed today just because that's what you do on days like this. NVDA still has some serious challenges and seems to be having increased challenges. Microsoft Office used to be a huge part of Microsoft's business but that business is getting much smaller quickly.

There are some great buys in technology that leverage the transition to the mobile platform, but the old breed of x86 based businesses should be avoided until they prove they can adapt. Lots of other chip companies are going to face challenges. I'm not saying Intel is doomed, I'm just saying it needs to prove it can make the transition.