nVidia's stock taking a massive beating
- Thread starter crsgardner
- Start date
Scroll down. There's a story about nVidia releasing financials yesterday.
They lost about 4.36 overnight, and another .51 this morning. That's the 33% loss.
Yesterday's close was 14.46
This morning's opening was 10.10
It's currently at 9.59
They lost about 4.36 overnight, and another .51 this morning. That's the 33% loss.
Yesterday's close was 14.46
This morning's opening was 10.10
It's currently at 9.59
Unfortunately for good companies with good products...the worse thing is an ~equally good competitor with ~equally good products. ATI and nVidia both have very good products this year and both companies are bound to suffer with lower profit margins because of this. The only time both companies would do really well is if the graphics/mobo chip market is expanding beyond capacity which is not likely to happen anytime soon (i.e., demand outpaces supply).
IMHO....U.S. bonds are the place to be at the moment from an investors standpoint. And most of the "easy" money was made in bonds over the past ~3 weeks. I got my share (i.e., I invested 100% of my 401K plan in medium to long-term maturity U.S. bonds over the last 2 weeks and before much of the recent price runup
Regards,
Bud
IMHO....U.S. bonds are the place to be at the moment from an investors standpoint. And most of the "easy" money was made in bonds over the past ~3 weeks. I got my share (i.e., I invested 100% of my 401K plan in medium to long-term maturity U.S. bonds over the last 2 weeks and before much of the recent price runup
Regards,
Bud
Personally, I'm a little afraid ATI is going to rule the graphics market soon:
1.) ATI has absolutely killed nVidia in price/performance. The Radeon 9800 was a clear winner and nVidia charged too much for GeForces.
2.) All of the major consoles are going to be using ATI chips next generation.
3.) They had the chance to be the integrated graphics vendor for low-end machines and blew it. Instead, ATI has swept up the low-end graphics market (nearly every Dell we've bought at my company uses an ATI chipset).
Like I said, the 6800 is an excellent card, but it might be too little too late. As much as I think you get more bang for the buck with ATI, I'd hate to see only one major player in the graphics market (competition is always good).
1.) ATI has absolutely killed nVidia in price/performance. The Radeon 9800 was a clear winner and nVidia charged too much for GeForces.
2.) All of the major consoles are going to be using ATI chips next generation.
3.) They had the chance to be the integrated graphics vendor for low-end machines and blew it. Instead, ATI has swept up the low-end graphics market (nearly every Dell we've bought at my company uses an ATI chipset).
Like I said, the 6800 is an excellent card, but it might be too little too late. As much as I think you get more bang for the buck with ATI, I'd hate to see only one major player in the graphics market (competition is always good).
Schadenfroh
Elite Member
- Mar 8, 2003
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I hope not. That's what I'm using. :/ Although, I do sometimes worry if nVidia will still be around to support the card in a few years.
Woah, don't you think its a little quick to judge on that. If Nvidia can crank up its distribution of 6800 and people actually begins to buy it, things could change a lot.
Compared to Nvidia, maybe, but compared to Intel nobody can rule squat
The company may not be, but the stock relies less on how big the numbers are, and more about how much improvement through the quarters and years, and nvidia is on a decline right now, 0.03 per share is what ATI was getting when their stock was at 4, and if they don't improve drastically on this, 4 will be where their stock is going
nVidia will not go under anytime soon And I am looking at buying nVidia, however, their PE is still at 22 and while I haven't read a lot lately on their financial, there business seems to be slowing down now.
Imo...take a look at Flagstar bank as an investment option. They've got a low PE and high dividend and if interest rates come back down again, their mortgage business should improve going forward. Actually, any bank which makes a lot of money in the mortgage business should be looked at as investment since interest rates and falling again and many of them stand to do more mortgage business.
I bought a couple hundred shares of Flagstar @$19.85/share with the above in mind.
The above is really off topic and I'll stop now with the investment talk
And I am looking at buying nVidia, however, their PE is still at 22 and while I haven't read a lot lately on their financial, there business seems to be slowing down now.Imo...take a look at Flagstar bank as an investment option. They've got a low PE and high dividend and if interest rates come back down again, their mortgage business should improve going forward. Actually, any bank which makes a lot of money in the mortgage business should be looked at as investment since interest rates and falling again and many of them stand to do more mortgage business.
I bought a couple hundred shares of Flagstar @$19.85/share with the above in mind.
The above is really off topic and I'll stop now with the investment talk
Schadenfroh
Elite Member
- Mar 8, 2003
- 38,416
- 4
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ATI has a history of not supporting drivers for their old products. nvidia has much better legacy support than ATI. Rage Fury Maxx windows 2000 drivers anyone?
If I was into day trading, I would probably want to pick some nvidia stock up. I think they will have a much better next Qtr.
Market shares tell only a part of a company's overall net worth. Share volume, outstanding shares, market value, etc all play into the bigger picture. I worked for the American Stock Exchange for 3 years on 86 Trinity Place in lower Manhattan as a market data analyst and know a *little about this.
Nvidia's share volume is 25,878,955 with 165 million shares outstanding. Price is 10.00 a share. 10x25,858,955= $258,589,550.00
On the other hand, here is a little of Ati's info.
The share volume of Ati is a mere 5,699,697 with 245 million outstanding. Price is 14.68 a share. 5,699,697x14.68=$83,671,551.96
Outstanding are unpurchased.
In perspective, if Nvidia had the same share volume (which by the way, is FIVE times larger) as Ati, each stock would be worth upwards of 50 dollars each as opposed to 14.68, going strictly off the current index.
You cannot look at price figures or market drops and percentages as clear indications of a companies net worth, profit margin, or position. The market does not function that way. Nvidia clearly holds a larger portion of the market, regardless of individual share price or percentage flucuations. Due to it's volume, it would have a greater influence on the NASDAQ's daily earnings or losses than Ati.
In the end, it wouldn't make any of the current NV40 or R420 cards perform any slower or faster for that matter.
Nvidia's share volume is 25,878,955 with 165 million shares outstanding. Price is 10.00 a share. 10x25,858,955= $258,589,550.00
On the other hand, here is a little of Ati's info.
The share volume of Ati is a mere 5,699,697 with 245 million outstanding. Price is 14.68 a share. 5,699,697x14.68=$83,671,551.96
Outstanding are unpurchased.
In perspective, if Nvidia had the same share volume (which by the way, is FIVE times larger) as Ati, each stock would be worth upwards of 50 dollars each as opposed to 14.68, going strictly off the current index.
You cannot look at price figures or market drops and percentages as clear indications of a companies net worth, profit margin, or position. The market does not function that way. Nvidia clearly holds a larger portion of the market, regardless of individual share price or percentage flucuations. Due to it's volume, it would have a greater influence on the NASDAQ's daily earnings or losses than Ati.
In the end, it wouldn't make any of the current NV40 or R420 cards perform any slower or faster for that matter.
On moneycentral.msn.com, latest financial results:
Nvidia: $1.89bn sales
$77mil income
Net profit margin: 7.00%
ATi: $1.83bn
$169.8mil income
Net profit margin 9.3%
ATi has had a serious turnaround recently-ish (last year or 2), and have gone from running a loss to a profit.
Yes they have, and they are doing well. But to say that a share price or percentage drop tells the whole story is ludacrous.
You must have missed my post above. According to those numbers, Nvidia is currently in a better spot than Ati, but one must account the sales of it's chipsets as well(not just it's graphics line).
He is right, Nvidia isn't going anywhere, not with 5x the amount of shares in investor's hands as opposed to ATi.
He is right, Nvidia isn't going anywhere, not with 5x the amount of shares in investor's hands as opposed to ATi.
We could buy into that argument if it wasnt for the fact it was Intel who took marketshare from both Nvidia and ATi last quarter. Intel definately doesnt have the best product in the channel. But they sell a lot of chipsets with an integrated GPU.
This is taken from another article
Analysts said the company lost market share to both ATI and Intel. In a research note released Thursday, Jon Peddie Research stated that Intel's share in the graphics chip market rose from 33 percent in the first quarter to 37.7 percent, while Nvidia's share declined from 27.2 percent to 23.2 percent. ATI lost market share--but only marginally, sinking from 24 percent to 23.2 percent.
Intel is gobbling up marketshare, especially in the low end.
It's pretty irrelevant how many OEM's buy ATI cards, or whether they're going into video game consoles. ATI makes squat off of those sales. Look at the prices of Dell PC's.....you think they pay ATI (or anybody) that much margin? They don't. ATI (or nvidia) would probably take a loss on sales ot Dell just to use Dell as a marketing tool.
Dont forget that there isnt just graphics chips' sales here, theres mobile, cellular, chipset, vivo products.
Im glad someone put up the volume numbers to clarify the value of each company... NVIDIA isnt going anywhere.
Im glad someone put up the volume numbers to clarify the value of each company... NVIDIA isnt going anywhere.
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