Nvidia stock dropping the last few days

[pcslookout]

Does anyone know if this is true for the people who are more stock market gurus ? If it really is happening maybe its a sign for whats to come ? Interesting if indeed true.

 

[Dacalo]

The stock has been declining because the analysts downgraded NVDA. They believe the short term earnings don't look so hot and the earnings peaked back in July. Long term wise, the company is doing OK.

 

[emfiend]

So many different pieces of information goes into the valuation of stocks, its hard to speculate a reason for it right now. Technology, in general, lags the immediate discussions that happen on forums like this. For example, when Intel's Core 2 came out, the prices were still on the decline for about a week after the chatter on the internet started taking notice of the benchmarks.

Perception and frenzy can also contribute. The economic picture looks dim for the country and many are bracing for a recession because of the popping of the housing bubble. Macroeconomically, most believe average households won't have the discretionary money to spend on computers, cars, and plasma tv's through most of 2008. That could be another partial reason for Nvidia's decline.

And then there's Nvidia's balance sheets. There could be high cost on the new batch of GPU's that may not offset the profits from high sales. So even though consumers rave, analysis of NVDA may show that its expected returns to be smaller than, say, ATI that *might* have lower costs in production and operations.

 

[emfiend]

LOL. I take back what I said. NVDA is up almost 5% on the day and almost 8% since yesterday.

 

[PingSpike]

I think this is what nvidia's plan is: Cripple AMD/ATI, attempt to gain critical mass in the discrete graphics card market before Intel can bring all its stength to bear. Or at least, I can't think of a better plan given their spot. Right now, they're fine. They've got a good product and their financials are good, right? But their motherboard chipset business is up in the air and neither AMD or Intel are going to be their friends any longer then they have too.

So, AMD is gutshot be Intel and nvidia will roll in and shoot out their knees (graphics division). The company is already weak, and nvidia is really coming hard with the 8800GT. After AMD just plain runs out of R&D money nvidia will be better able to afford some kind of war with Intel, whatever that may be.