On October 22, Microsoft will launch its new Windows 7 operating system.

If the release goes smoothly, Microsoft stands to gain from sales of the new software. That’s because many computer users put off upgrading from earlier versions because of complaints about its previous Windows release, Vista. The company has also timed the launch of Windows 7 to coincide with the beginning of the Christmas shopping season.

Other technology stocks stand to gain from Windows 7

Aside from Microsoft, there are many other technology stocks that could profit from the new operating system. These include chipmakers Intel Corp. (Nasdaq symbol INTC) and Nvidia Corp. (Nasdaq symbol NVDA).

We’ve taken a close look at these two technology stocks in the current issue of Wall Street Stock Forecaster.

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Two chipmakers poised to gain from long-term trends

Intel is the world’s leading chipmaker, with 80% of the market. The company is in the process of combining its operations into two main divisions. The first, the Intel Architecture Group, will design chips for computers, cellphones and similar devices. The second, called the Technology and Manufacturing Group, will manage this technology stock’s manufacturing plants.

Intel is well-positioned to take advantage of long-term trends, such as the growing use of mobile devices to access the Internet. And it could see a rise in chip demand with the launch of Windows 7. That’s because many users are likely to buy new systems, instead of upgrading their current ones with the new software.

Like Intel, Nvidia also designs chips, but it outsources most of its production to chipmakers in Asia. The company’s chips make computer games run more smoothly and appear more lifelike. The recession has pushed down this technology stock’s sales and earnings, but Nvidia continues to spend heavily on research, especially on chips for mobile devices. As with Intel, Nvidia could see higher sales if Windows 7 prompts users to buy new machines.

We’ve updated our advice on Intel and Nvidia in light of the pending launch of Windows 7. We’ll also continue to monitor these stocks, and update our buy/sell/hold recommendation as necessary in our Wall Street Stock Forecaster newsletters and hotlines. Click here to learn how you can subscribe for one full year with no risk and no commitment.