nVidia stock soars

[HardWarrior]

Story

Why am I not surprised?

 

[Lonyo]

So they're back at the level they were at 3 months ago, before the massive (33%) drop.
And ATi has been going up steadily too, from 15.5 3mo ago, to ~18.5 now.

 

[HardWarrior]

Originally posted by: Lonyo
So they're back at the level they were at 3 months ago, before the massive (33%) drop.
And ATi has been going up steadily too, from 15.5 3mo ago, to ~18.5 now.

Good news for us all around then. More money to pump into R&D and more competition, hopefully.

 

[Shamrock]

it's all due to 1 number, and 2 letters

6800 GT

 

[jiffylube1024]

Bah, I shoulda bought some stock in them (again). Curses!

 

[bunnyfubbles]

Not as big of a jump as back when they announced/released their first "GPU", but going up none the less

 

[Chudilo]

So does that mean that the 6800 GTs have a huge profit margin ..and are not as expensive to manufacture as they have us believe?

 

[eyeballkid]

The whole 6800 series have low profit margins. Idea was to capture the high-end market which would then translate into more sales in middle/lower markets down the road. Let's see about that...

btw their executives are actually rebuying some stock, always a good sign...

 

[techwanabe]

btw their executives are actually rebuying some stock, always a good sign...

Definitely!

 

[Genx87]

Actually I bet the 6800 series has good margins but low volume.

 

[ponyo]

Almost a double from that panic low of $9 and change couple months back. Pretty big insider buying from their directors using their own money after that big haircut.

At this point I wouldn't bother with Nvidia. The easy money has been made.

If you're looking for good longterm hold, check out Merck. That stock is taking a pounding from Vioxx drug scandal and the lawsuits that's to come. It's similar to what happened to Wyeth after fen-phen diet drug scandal in 2002. Billions will be paid out but the company will survive and stock price will recover eventually. Also reminds me of Phillip Morris and Halliburton depressed stock price couple years back due to smokers and abestos lawsuits. Let Merck settle down and find a bottom in the next month or two as mutual funds sell this to get off their books and window dress their portfolio. Then buy it, and hold and collect your 5% plus dividend checks while you patiently wait for the stock price to recover. Hopefully the dividend will stay but that could be cut if lawsuit payout gets severe. But the high dividend is gravy. Merck will rebound but it will take time. I sold all my Apple shares this week for a nice triple and am waiting to scale into Merck with the profits.

 

[SilverTrine]

The X800 line outsold the 6800 line 52% to 48% for the period, the Mercury numbers included the 6200 and 6600 chips Nvidia sold in the 'high end' numbers.
As far as Nvidia's profit their expected profit had been reduced several times for the quarter.

I guess fools and their money are easily parted as Nvidia is trading at a 55 p/e, and ATi is about to release the R520 that investment houses like Goldman Sachs believe will clobber Nvidia.

 

[jiffylube1024]

Originally posted by: Chudilo
So does that mean that the 6800 GTs have a huge profit margin ..and are not as expensive to manufacture as they have us believe?

Oh they're expensive to manufacture alright. Buth both companies are charging more than ever for the top-end cards, so that's how they're making so much dough.

Think about it - 6800GT's and X800 Pro's with an MSRP of $399 are hot sellers, compared to last generation's high end hot cards, the 9800 Pro and 5900/5900XT, which were $200-300.

Also, with the big delays on the new "mid range" cards, the X700 and 6600 series, many would-be mid-range buyers just gave up and paid the extra money for the (available) 6800nu/GT's or X800 Pro's.

 

[kylebisme]

Heh, they have almost caught up to Ati, good to see Nvidia coming back strong.

 

[ronnn]

Originally posted by: TheSnowman
Heh, they have almost caught up to Ati, good to see Nvidia coming back strong.

:beer:

 

[ScrewFace]

That's great news! We need competition to drive innovation, performance and quality if not lower prices. Go nVidia! Go ATI!:beer: