nvidia in deep doo doo

Discussion in 'Videocards - NVIDIA GeForce' started by philheckler, Jul 3, 2008.

  1. Karl 2

    Karl 2 Ancient Guru

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    Oh ya the stock market is rolling on the floor laughing. ;)

    ATi's problem's started after the merger with AMD (they didn't get "bought out") and please find me a serious financial analyst who ever predicted the end of AMD. BTW AMD and ATi still maintain separate corporate identities and under the terms of the merger AMD could even go bankrupt without affecting the survival of ATi, which would resume life as a bachelor so to speak. How do you think ATi is to maintain and even expand its partnership up with Intel, and why was it never considered to sell ATi cards under the name AMD? The only ATi product that became an AMD product was the little-known ATi chipset for Crossfire mainboards, which is now sold by both AMD (for AMD based boards) and Intel, the latter with unprecedented commercial success. nVidia's lifelong refusal of taking part in mutually beneficial ventures with powerful trend-setting partners has always gone against the basic laws of sound business administration and while that culture made it a speculators darling as long as it was on top with nothing threatening in the offing it also means it finds itself without allies when the going gets rough, and it's getting real rough now.

    Neither ATi nor AMD ever took a 25% stock hit, that is a very serious incident and the fact that nVidia is considered a maverick makes investors nervous especially since the coming out in the open of the ATi/Intel "romance" that can only spell bad news for nVidia sales prospects. nVidia is a much worse situation than ATi ever was, it is losing value big time. It would be tough enough if ATi was its only concern but the problem with those defective OEM chips is the last thing nVidia needed, if corporate clients start suspecting nVidia has cut corners whether it did or not won't matter much. nVidia's management cannot afford the luxury of brushing this away saying "no big deal ATi once had problems too."

    Problems of this magnitude? No.
     
  2. hemmy

    hemmy Master Guru

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    No financial analyst, people on the forums.

    I never claimed anyone who knew what they were talking about said these things, but every time one company sees rough times people start predicting what life will be like once they go under.

    NVIDIA will be fine

    Also, while ATI remains their own brand, they are no longer a public company and are part of AMD, similar to ESPN and ABC being part of Disney.
     
  3. philheckler

    philheckler Master Guru

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    I don't think anyone believes that nvidia will go under...

    Karl2 summed up the situation well below...

    working in the semiconductor subcontract industry I know how important customer confidence is - one little mistake or problem and your really in deep trouble , quality auditors all over the place looking under every stone ... chip packages go through long rigorous qualification /test / stress / retest runs - you really can't afford to cut corners on reliability testing as the costs of fixing problems at component level increase massively once the chips get assembled into computers...
     
  4. Karl 2

    Karl 2 Ancient Guru

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    Fine but it's not just people on the forums who are saying nVidia is in trouble, it's the financial press as a whole. The company's worth is less than half what it was back in January.

    Right now nVidia is in a ripe position for a takeover and there's no telling what a new owner's policy would be. We know what AMD would do: it would pull a 3dfx on nVidia. But fear not, anti-trust regulations wouldn't allow AMD to get involved. Intel? One of the reasons nVidia's stock is so low is that the Intel/ATi partnership makes it virtually impossible for Intel to be interested in nVidia. Keep an eye on Matrox though. If nVidia was to change hands this would be the most desirable outcome. Matrox is in excellent financial shape and even though it has been claiming for years it wasn't interested is developing consumer products anymore the possibility of acquiring a ready-made line of products may prove very tempting. Not to mention it would keep competition alive and kicking.

    I see no harm in predicting possible outcomes.

    Without getting into corporate financial intricacies that would take us way off topic on a hardware forum let's just say the association between AMD and ATi is more like Chrysler once being part of Daimler. " 'til debt do us part " lol. ATi has not been absorbed by AMD, regulations in Canada at the time would not allow it. ATi's production facilities in Toronto and Silicon Valley have remained distinct from AMD's. Also, AMD cannot use ATi assets to pay off its own debt. It's like marriage with a prenup.
     

  5. cowie

    cowie Ancient Guru

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    takeover my a55
    they are made of money,they got so much cash at there ready if need be.
    they have no dept and when they doo doo, money comes out.
     

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