Investing in the components of the PC industry can be tricky. Even Intel
In hard drives, memory, and other portions of the PC industry, the situation has been even worse, with a handful of players continually beating on each other. With all this as a backdrop, you can hardly fault investors for running away from video and graphics company ATI Technologies
However, it's still debatable whether ATI's ongoing battle with graphics-technology rival and Motley Fool Stock Advisor pick NVIDIA
Slightly offsetting the quarter's negative aspects, ATI still managed to generate positive cash flow from quarterly operations, and has a cash war chest of $644 million against negligible long-term debt of $29 million. In addition, while the PC business is tough, the consumer side of the business appears poised for further growth, with sales to Motorola
Despite all the negatives, I can think of worse places to invest in the realm of technology. ATI and NVIDIA still dominate their industry technologically, and both have relatively large cash hoards. As long as the two can keep the other graphics chipset designers on the industry's fringes, there's little reason why both cannot be profitable.
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