My initial reaction as loss ( due to unfair politics) in elections was to never visit this site again. Sanity prevailed after few hours and therefore I am back.

I wanted to give you my feeling about Nvidia as I see many guys bullish about stock and long before its earnings.

My take is the following

1) Nvidia will not meet expectations and cannot provide guidance. High end processors are a major victims of cuts in the disposable income of the consumer. Gamers are typically of two type—25+ nerds and high school kids. Later category will not get money from parents to buy those graphics cards.

2) Intel results should not make you think Nvidia can also do it. Intel is in every computer sold. Lot of them were sold in Asia right from to businesses and households. Not even 10% of them will contain Nvidia cards especially ones sold to corporates in Asia

But

I think stock will shit after the earning and hit between 16-18 and then it is a buy for 2-3 yrs

1) Move into mobile devices will help the bottom line.

2) Cheap CPU manufactures will help Nvidia compete with Intel

3)Gamers capability PCs share will grow in the market over time

4) Lot of people will prefer dual core with Nvidia than 4 core laptops with no much graphics..as graphics are key for next generation entertainment on the laptops

Lot of the success will depend on competition with Intel and therefore it will be risk. But if Nvidia has even small wins over Intel then expect the stock to be 30 back in 2 yrs.

Disclaimer
The materials appearing on this post do not constitute legal and financial advice and are provided for general information purposes only. I shall not be liable for any technical, editorial, typographical or other errors or omissions within the information provided in this post