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Why is Nvidia's stock taking such a thrashing?

Compddd

Golden Member
Jul 5, 2000
1,864
0
71
Did I miss something? I haven't heard of anything major happening, nothing to justify their stock getting clobbered down from $20 to $16 in one month.
 

Imp

Lifer
Feb 8, 2000
18,829
184
106
Because they rock... Not going to mention how much growth has been priced in.
 

Mopetar

Diamond Member
Jan 31, 2011
6,125
2,943
136
Android tablets (And by extension Tegra 2 SoCs) haven't been selling as well as expected, nVidia basically got booted out of the x86 chipset business, and ATI/AMD has been fairly competitive at all ends of the GPU spectrum, and the shift towards APUs may reduce the market for discrete GPUs to some degree.

Of course it's the stock market so even if they were doing well, investor worries can keep the price artificially low. If, on the other hand, there were some substantial reports of a possible Intel buyout, the stock would probably shoot up to $25 or higher relatively quickly. That's just how the stock market works.
 

Genx87

Lifer
Apr 8, 2002
41,061
494
126
Not sure, Nvidia is down over 3% today and AMD is down over 4%. Something happen we dont know about for both of these companies today? Intel is unchanged.
 

Compddd

Golden Member
Jul 5, 2000
1,864
0
71
Why are tech stocks down because of Greece, but the DOW is up? and Nvidia having some of the worst performance today of all the stocks. Doesn't make sense.
 

cotak13

Member
Nov 10, 2010
129
0
0
You guys realize that sometimes stocks drops just because the big institutions are taking profit?

In some ways the stock market is no longer about everyone being able to share in the success of a company. It's becoming legalized gambling.
 

notty22

Diamond Member
Jan 1, 2010
3,375
0
0
Last edited:

notty22

Diamond Member
Jan 1, 2010
3,375
0
0
In part because of this
Blackberry announced 'troubles'
[SIZE=-1]In the news
[/SIZE] RIMM 28.01 -7.32 (-20.72%)
 

Knavish

Senior member
May 17, 2002
910
3
81
Whether or not the current stock price is reflecting Nvidia's future outlook, I'd say Nvidia stock is a risky proposition:
  • They've been chased out of the chipset business -- they've lost the high volume / low end market.
  • GPUs on CPUs from Intel and AMD are getting to be actually useful. Within a year or so, I bet the majority of systems sold to home users from Best Buy or Dell won't even have video outside of the CPU. (Nvidia will lose a chunk of the middle performance market here.)
  • Nvidia is left with high end / low volume gamers and professional cards. (Low volume!)
  • Nvidia's cellphone / tablet SOC chips are facing heavy competition from multiple manufacturers.
 

Genx87

Lifer
Apr 8, 2002
41,061
494
126
Whether or not the current stock price is reflecting Nvidia's future outlook, I'd say Nvidia stock is a risky proposition:
  • They've been chased out of the chipset business -- they've lost the high volume / low end market.
  • GPUs on CPUs from Intel and AMD are getting to be actually useful. Within a year or so, I bet the majority of systems sold to home users from Best Buy or Dell won't even have video outside of the CPU. (Nvidia will lose a chunk of the middle performance market here.)
  • Nvidia is left with high end / low volume gamers and professional cards. (Low volume!)
  • Nvidia's cellphone / tablet SOC chips are facing heavy competition from multiple manufacturers.
Everything is a risk. However they were run out of the chipset business years ago. They have replaced that revenue stream with other products.

Intel owns 60+% of the GPU market for a reason. The majority of computers sold through OEMs or best buy already have an IGP. AMDs APU is nothing more than an IGP on the CPU die like Intels SB. This trend to use IGP isnt new. Been happening for years. And Llano is low low end. It loses to a 40 dollar GTS 240 from Nvidia.

The high end provides large profits. I believe those low volume Quadro cards account for about 19% of Nvidia's revenues and even more % for their actual profits.

Nvidia has strong competition in SOCs. It will be interesting to see if they can out launch their competition like they did in the graphics world a decade ago. Basically flood the channel with new and improved products to the point the competition gives up due to lower margins.

There is a huge upside to Nvidia if they can corner the SOC market for cells and Tablets. Kal El imo is the 2nd step in this process.
 

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