Nvidia shares fall to 3-year low

[jobrien2001]

Nvidia shares fall to 3-year low

http://money.cnn.com/news/newsfeeds/articles/apwire/5f9aad3c92593e6e95fce2602d302b12.htm

[CGR]

Its to be expected, people are tightening their purses because of gas and inflation.

[I.M.O.G.]

If it were gas and inflation, it'd be reflected across all other markets, and that isn't the case.

A lot more likely its due to the reliability issues becoming more public, as well as the way nVidia handled it poorly.

[MR-FIX-IT]

Its to be expected, people are tightening their purses because of gas and inflation.

No its because of the law suit for the chip failures

[CGR]

If it were gas and inflation, it'd be reflected across all other markets, and that isn't the case.

A lot more likely its due to the reliability issues becoming more public, as well as the way nVidia handled it poorly.

It is across all markets. Everyone is tightening. You see that everyday on the news.

Hell, even I have put off my X2 purchase due to prices going up.

No its because of the law suit for the chip failures


Thats only a SMALL part of it..

[MR-FIX-IT]

Thats only a SMALL part of it..

Its the only part... What was the stock prior to July 2008????

[CGR]

Its the only part... What was the stock prior to July 2008????

The lawsuit didnt come until September, therefore had nothing to do with the drop in July.

[I.M.O.G.]

Mr Fixit is correct - lawsuits scare people off stock very well, when that suit is settled, stock will normalize quickly.

Also, everyones stock is not at a 3 year low - thats exceptional, not the norm. Everyone may be hurting a bit, we are in a recession, but Nvidias recent performance is worse than the rest of the market, largely due to Fixits point. There has been speculation about that suit for quite some time - just because it was filed in September didn't mean the analysts didn't see it coming. Here you go:
http://www.tgdaily.com/content/view/38237/135/

AMD has made a bunch of price cuts recently, why are you waiting to purchase an X2?

[MR-FIX-IT]

It went from Closing july 2nd of $18.03 to the open on july 3rd at $12.09. That's when it went public... Dropped $5.94 in a second!

[CGR]

Mr Fixit is correct - lawsuits scare people off stock very well, when that suit is settled, stock will normalize quickly.

Also, everyones stock is not at a 3 year low - thats exceptional, not the norm. Everyone may be hurting a bit, we are in a recession, but Nvidias recent performance is worse than the rest of the market, largely due to Fixits point. There has been speculation about that suit for quite some time - just because it was filed in September didn't mean the analysts didn't see it coming.

AMD has made a bunch of price cuts recently, why are you waiting to purchase an X2?

When did Nvidia reports its earnings? If it was in July, that could easily have lowered the stock.

Also, lets not forget their lackluster 200 series cards getting slapped silly price wise to ATI, that didnt help either.

Im waiting because the economy sucks and the prices on everything are rising. Not about to shell out $500 at the moment with such conditions.

Edit: It was when they mentioned their 200 million charge for warranty replacements that dropped the stock so much in July. However that still has nothing to do with the lawsuit, that would only affect the stock in September.

[BossBorot]

there are a bunch of reasons why it droped most of which have been mentioned here.

First of all nVidias stock was bloated a few months ago. nVidia was fat off of more then a year of ATi playing catch up and complete dominance of the high end. As soon as ATi produced something competative nVidias bloated stock lost some of its fat.

However that alone doesnt explain what happened. Obviously everyone knows about their 200 million hit which was a big wake up call to investors to get out. Then they failed to make their projections which investors really hate. If you make 20 million more then you did last quarter but the market expected you to make 40 million more your stock will drop.

The current lawsuit against them only adds to their problems. If nVidias problems were limited to this suit alone their stock most likely would only see a scare drop and then return to relatively normal levels. Also the current economy scares off investors easier then if there wasnt a recession meaning that if you see nVidias stock is doing bad you are willing to jump ship rather then ride it out.

Right now nVidias stock is vastly undervalued and as soon as we see nVidia returning competative products to their lineup from top to bottom, provided that it is not overshadowed by some other problem we dont know about yet, nVidias stock should rebound well.

[Mr.Guvernment]

ye the fraud they got busted for, price fixing didn't help, it isn't SOLELY cause of the bad chips Mr Fix it as you tout in another thread claiming NVIDIA is going under and doing a completely recall!

their stock is under valued now, but for the last year is was inflated beyond any reasonable amount!

[ratbuddy]

I'm grabbing a few hundred shares. Great time to buy.

[Cheator]

I'm grabbing a few hundred shares. Great time to buy.

Not entirely. They don't have anything new coming out for a bit, no market busters. A good time to buy would be when its about to shoot up. It will probably dip lower, so you should hold off.

[ratbuddy]

Not entirely. They don't have anything new coming out for a bit, no market busters. A good time to buy would be when its about to shoot up. It will probably dip lower, so you should hold off.

If it goes even lower I'll buy more. As I mentioned in another thread, they could go out of business tomorrow and still be worth $4.26 a share. They have a lot of money in the bank.

[BossBorot]

nVidia is not even remotely in as much trouble as people like to say they are. People just like to kick companies when they are down. The last few months ATi was down and getting kicked, now they are back up and nVidia is down. Also if you look at nVidias current actions they are doing everything they can to fix their problems. They are changing materials on their gpus just to be safe even on products that havent seen massive falures, they are shrinking their chips aggressively, and admit that they need to change.

Currently I think nVidia is in a better position then AMD is let alone when ATi wasnt competative in the high end. This is nVidias first bad quarter in how long compaired to ATi which has only bleed financially since getting bought by AMD.

nVidia will learn from these problems and return full force. ATi certainly learned from their falues and worked to fix them to get where they are today (r600) I expect nVidia to do the same. Also you cant even compair the gt200 to the falure that was the r600. nVidia has bounced back from worse gpus and been just fine.

If anything this is a good opportunity to buy nVidia stock. If I wasnt a poor college student I would buy nVidia stock the second they release a new gpu that gets favorable reviews.

[I.M.O.G.]

When did Nvidia reports its earnings? If it was in July, that could easily have lowered the stock.

Also, lets not forget their lackluster 200 series cards getting slapped silly price wise to ATI, that didnt help either.

Im waiting because the economy sucks and the prices on everything are rising. Not about to shell out $500 at the moment with such conditions.

Edit: It was when they mentioned their 200 million charge for warranty replacements that dropped the stock so much in July. However that still has nothing to do with the lawsuit, that would only affect the stock in September.

That was the point at which everybody saw the lawsuit coming... For the longest time nvidia denied the problems and there was talk of this all over, including huge sites like slashdot.

[AsusLover]

Oh who cares geez, we have another thread with 5 pages of posts that talks all about this crap...why another one

[David]

Oh who cares geez, we have another thread with 5 pages of posts that talks all about this crap...why another one