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Chipmaker Advanced Micro Devices Inc. (AMD - Analyst Report) recently partnered with Aviary, a photo-editing toolkit maker, to give Windows 8 users and developers a better, faster set of photo-editing tools and features.

Aviary is a software firm that provides a fully customizable software development kit (SDKs) for photo editing applications on iOS, Android, Windows Phone and HTML5. Aviary’s services are also used by Flickr, Twitter and Photobucket, which integrate the photo-editing features into their respective apps.

According to the agreement, all Windows 8-powered devices that run AMD processors will be able to use Aviary’s photo-editing tool. The deal will help developers to quickly integrate and deploy a host of photo editing tools into their apps, resulting in performance improvement.

Additionally, Aviary has released its first Windows 8 app through the Windows Store to showcase the features and functionality of the Aviary SDK for Windows 8. Aviary stated that with AMD APUs, photo effects can be processed up to 16X faster than on other processors.

The new agreement with Aviary should increase the sale for Windows 8 PCs. We believe the popularity and functionality of Aviary’s software should make it easier for Microsoft to convince developers to build apps for Windows 8. Developers could now use Aviary’s toolkit instead of developing their own software, hence reducing their workload and freeing up resources for other useful purposes.

The collaboration is actually backed by an investment from AMD Ventures to enhance user experiences on its APU platforms.

Given the current popularity of photo editing on the web, the absence of a platform to easily deploy this feature within apps was a huge drawback for the Windows app store. Hence, we believe that apps with built-in photo editing features could be a competitive advantage for Microsoft’s Windows 8 PCs, laptops and tablets.

We are positive about AMD’s endeavor to support companies to deliver innovative products and technologies to its customers. However, Intel Corp. (INTC - Analyst Report) is a very strong competitor with significant resources and technological prowess. AMD on the other hand is struggling to hold its own. Last week, the company signed an agreement to sell its campus and lease back its property to unlock much-needed cash.

AMD is the world's second largest maker of microprocessors but it has been losing ground to its larger rival, Intel. In the last concluded fourth quarter, AMD’s revenues came in at $1.16 billion, down 31.7% and more or less in line with its revised guidance of a 9% sequential decline (at the mid-point). However, solid expense management helped the company to deliver earnings ahead of the Zacks Consensus Estimate.

Currently, Advanced Micro has a Zacks Rank #3 (Hold). Semiconductor stocks worth considering at current levels include Intersil Corporation (ISIL - Snapshot Report) and Qualcomm Inc. (QCOM - Analyst Report), both carrying a Zacks Rank #2 (Buy).

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