Nvidia Takes A Pounding On Wall Street
In the past six weeks, prices of graphics cards for personal computers with Nvidia's 9800GTX chip have fallen to $200 from as much as $275, said Blake Fischer, an analyst with Stifel Nicolaus & Co. in Dallas. He recommends buying the shares, which he doesn't own.
Nvidia also said it will be less profitable than previously estimated, without providing details. In May, the company forecast that gross margin, the percentage of sales left after production costs, would widen 1 percentage point from 44.6 percent in the first quarter. The second quarter ends July 31.
I predict the "less profitable than previously suggested" number will turn out to be... $200 million. Just a hunch. Blake Fischer is not alone in his assessment; other analysts quoted in the article also see the depressed share price as a buying opportunity, and like Nvidia's long term prospects. Just not their packaging.