NVDA missed earnings, stock trading halted

[glen]

All information suggested this was an undervalued stock.
I don't know how you could have forseen this with out insider information.

 

[ultimatebob]

I'm not really worried. I'm holding onto my NVDA for the long-haul, because I still think that it's a solid tech company. They know how to design good products, and make money doing it. Remember, people panic sold tech stocks like Iomega when it went down to $5, and now it's trading around $12.

Besides, no one ever made money by buying high, and selling low.

 

[glen]

The problem is, no one, including myself, believes anything companies say these days.
They recently affirmed earnings, then dropped this bombshell out of the blue today.
They have solid products, but no credibility right now.

 

[Doggiedog]

Originally posted by: glen
All information suggested this was an undervalued stock.
I don't know how you could have forseen this with out insider information.

You don't need insider information to figure out this one.

Look at TSMC. They had a terrible quarter. Their number one customer is NVDA. They went from about 55K wafer starts down to about 10-15K wafer starts a month for NVDA. If that isn't writing on the wall, I don't know what is.

 

[TNTrulez]

Ouch. Bad for stock owners that's for sure. Lucky for me I only lost about 1grand in the stock market when the .com bubble bursted.

 

[glen]

Look at TSMC. They had a terrible quarter. Their number one customer is NVDA. They went from about 55K wafer starts down to about 10-15K wafer starts a month for NVDA. If that isn't writing on the wall, I don't know what is.

Sure, in hind sight, however, we also know NVDA move a bunch of buisness to TSM's competitor.
That could acocunt for TSM guiding lower.

 

[NFS4]

YEEEEEEEEEEEEEEEEOUCH!!!

But doesn't surprise me considering that every tech company is getting reamed in the ass right now.

 

[Doggiedog]

Originally posted by: glen

Look at TSMC. They had a terrible quarter. Their number one customer is NVDA. They went from about 55K wafer starts down to about 10-15K wafer starts a month for NVDA. If that isn't writing on the wall, I don't know what is.

Sure, in hind sight, however, we also know NVDA move a bunch of buisness to TSM's competitor.
That could acocunt for TSM guiding lower.

That's news to me. I never heard of NVDA moving business to a competitor. NVDA has always used TSMC from the beginning. The fact that they reduced wafer starts shows NVDA knew business was slowing or there was too much inventory. This isn't hindsight either because TSM reported 1 1/2 weeks ago. There was ample time to get out.

 

[ElFenix]

Originally posted by: NFS4
YEEEEEEEEEEEEEEEEOUCH!!!

But doesn't surprise me considering that every tech company is getting reamed in the ass right now.

dell is beating expectations and continues to show profit 🙂

i wonder how this quarter is going to do? ends tomorrow i think.

 

[Doggiedog]

Originally posted by: ElFenix

Originally posted by: NFS4
YEEEEEEEEEEEEEEEEOUCH!!!

But doesn't surprise me considering that every tech company is getting reamed in the ass right now.

dell is beating expectations and continues to show profit 🙂

i wonder how this quarter is going to do? ends tomorrow i think.

The quarter ended June 30, Dell is going to report tomorrow.

I'm sure they will do ok but if you look anecdotally, you may have noticed "Steve" all over the place and maybe you noticed Dell is resorting to gimmicks like $50K giveaway per day. Things like that are red flags for me considering Dell never needed to resort to gimmicks to get business before. Times are tough now for everyone.

 

[datalink7]

Originally posted by: NFS4
YEEEEEEEEEEEEEEEEOUCH!!!

But doesn't surprise me considering that every tech company is getting reamed in the ass right now.

Except Microsoft who has 40 fricking billion dollars in the bank!

 

[joohang]

OUCH!

 

[glen]

That's news to me. I never heard of NVDA moving business to a competitor. NVDA has always used TSMC from the beginning. The fact that they reduced wafer starts shows NVDA knew business was slowing or there was too much inventory. This isn't hindsight either because TSM reported 1 1/2 weeks ago. There was ample time to get out.

They have been with TSM from the beggining, thats why their placing orders with UMC was huge news.

 

[Draco]

*sigh* It's really depressing how much money I've lost (on paper) in the stock market in the past 2 years, and I'm only 21. This annoucement only further depresses me, and my stock in NVDA. I'll hang in there I guess, no other choice.

Ugh... this blows.


From now on I'll just follow my Dad's lead, he bought GE, HD, PFE, and YUM a couple weeks ago and has already made thousands on those purchases.

 

[geoff2k]

Originally posted by: datalink7

Originally posted by: NFS4
YEEEEEEEEEEEEEEEEOUCH!!!

But doesn't surprise me considering that every tech company is getting reamed in the ass right now.

Except Microsoft who has 40 fricking billion dollars in the bank!

I wish MSFT would use some of that cash to pump up their stock price!

In related news, how reliant is NVDA on XBOX earnings? Is this any indication of how poorly XBOX sales are going?

Edit: I just read the Yahoo article: "On a conference call to discuss the warning, Chief Executive Jen-Hsun Huang said part of the write-off would come from chips manufactured for Microsoft Corp.'s (Nasdaq:MSFT - News) Xbox video game console that are now obsolete because Microsoft has changed the security codes in the chip."

So people coming up with modchips screwed NVDA over. Great.

 

[Doggiedog]

Originally posted by: glen

That's news to me. I never heard of NVDA moving business to a competitor. NVDA has always used TSMC from the beginning. The fact that they reduced wafer starts shows NVDA knew business was slowing or there was too much inventory. This isn't hindsight either because TSM reported 1 1/2 weeks ago. There was ample time to get out.

They have been with TSM from the beggining, thats why their placing orders with UMC was huge news.

What are you talking about? NVDA doesn't use UMC. You must be mistaking AMD with NVDA. AMD recently announced a joint venture with UMC not NVDA. NVDA has alway been TSMC.

 

[ToBeMe]

Originally posted by: Doggiedog

Originally posted by: glen

That's news to me. I never heard of NVDA moving business to a competitor. NVDA has always used TSMC from the beginning. The fact that they reduced wafer starts shows NVDA knew business was slowing or there was too much inventory. This isn't hindsight either because TSM reported 1 1/2 weeks ago. There was ample time to get out.

They have been with TSM from the beggining, thats why their placing orders with UMC was huge news.

What are you talking about? NVDA doesn't use UMC. You must be mistaking AMD with NVDA. AMD recently announced a joint venture with UMC not NVDA. NVDA has alway been TSMC.

Miss this????😉

• Nvidia loses patience with TSMC
  
  
  Nikkei Net today reports United Microelectronics Corp (UMC) meeting investors to discuss its future performance.
  The article says that UMC's performance in Q3 "will not get worse" but the news about Nvidia is of greater interest.
  
  UMC apparently told investors that Nvidia will cut its orders with number one foundry TSMC from 140,000 parts in the first quarter to 30,000 parts in Q3.
  
  UMC will pick up the slack, which is noteworthy.
  
  The move is certainly not a reflection of poor sales at Nvidia. We believe from sources close to the company that it is still banging out parts like there's no tomorrow, and that its sales continue to be strong to its industry partner.
  
  UMC seems to be firming its performance up, judging from other announcements made today.
  
  Nvidia, like Transmeta, is known to be not very happy with TSMC because of a problem with its 130 nanometer process which started late last year.
  

 

[Doggiedog]

An observer familiar with the semiconductor industry said that TSMC forecast a bleak prospect for its performance in the third quarter, because nVidia Corp. would significantly shrink its production outsourced from TSMC. NVidia will trim its orders placed with TSMC from 140,000 pieces in the first quarter to 30,000 pieces in the third quarter. The order retraction of a single customer, interpreted as a kind of recession in the industry, has led to the worldwide panic-stricken stock markets.

It doesn't say that NVDA uses or will use UMC. It just states a wafer start reduction at TSM with no mention of the business being transferred. UMC does do a little work for NVDA with an XBOX co processor but they do not have any business with NVDA concerning GPUS.

But you are correct in that many people are frustrated with TSM and their 0.13 micron process. I'm hearing the yields are like 5-40% which is horrible.

 

[SALvation]

Ouch. Down 30% 🙁

 

[Draco]

Originally posted by: SALvation
Ouch. Down 30% 🙁

*quietly sobs* It's.. it's only money, right?!

<-- owns 200 shares. As long as they don't go the way of 3D/fx :-/

 

[Platinum321]

talk about stupid, i accidently bought the wrong ATI shares.... hehe. oh 'well.. i'm just gonna keep it.

ATI (graphics card) = ATYT... i bought ATI. ;p

 

[Lorax]

haha platinum.. whats your ATI do?

 

[UberDave]

Originally posted by: Draco

Originally posted by: SALvation
Ouch. Down 30% 🙁

*quietly sobs* It's.. it's only money, right?!

<-- owns 200 shares. As long as they don't go the way of 3D/fx :-/

🙁 I hope they don't go the route of 3dfx....they can't! 🙁 🙁

I'm actually debating wether or not to buy some more of that stock (NVDA) look how low it is- if they do stand strong in the end, imagine the profit you can make

 

[SALvation]

Be careful Dave, you're falling into a common stock trap. Don't try to think "How much lower can it go?". I'll tell you how much...11 points lower to zero. NVDA hitting 20 sounds like nothing but that would be almost double their value today. A very slim chance unless you feel like holding for YEARS.

Don't try to catch falling knives. People make mistakes of buying stocks as they are falling when they should be buying as the price is rising.

 

[AaronP]

everything is coming up Aaron!

I sold 500 shares of AOL yesterday at $12.41 and it dropped about a buck today. And I bought 200 shares of NVDA this afternoon at $11.09. I hope its a good price.