Jorj, If I was a betting man, I would say yes because the original rumor on the rise by NVDA today was that they were increasing wafer orders from TSM. There are conflicting comments on whether that was a rumor. I felt that it was when I took the position. I was not going to hold it into tomorrow and was out at 10.57 at the end of the day.
DJ ATI Tech/4Q Warning -2: Nvidia Not Gaining, Analysts
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14:24 ET
=DJ ATI Tech/4Q Warning -2: Nvidia Not Gaining, Analysts
10 Sep 14:24
In a research note Tuesday, Merrill Lynch analyst Joseph Osha said he
believes ATI Technologies Inc. (ATYT) fourth-quarter earnings warning was the
direct result of lower unit shipments in the notebook computer market.
Osha said he believes that, after a strong build-up in the second quarter of
calender 2002, the supply chain become overloaded with PC and notebook
inventory in the third quarter.
Osha also said that he believes Intel Corp.'s (INTC) integrated 830MG chip
for Pentium III-based notebooks may have gained market share against ATI's
mobility radeon line in the value market. He added that, "there is little to
suggest that the competitive discrete offering from Nvidia Corp. (NVDA),
GeForce2 Go, gained market share during the quarter."
Nvidia Corp. (NVDA) share are up 15% to US$10.61 on Nasdaq Tuesday. Analysts
said the increase may be due to rumors, which the company has since confirmed,
that the Santa Clara Calif.-based company made a big order to its product
manufacturer, Taiwan Semiconductor Manufacturing Co. (TSM). This could be a
sign that Nvidia's business is picking up after a steep decline.
But RBC Capital analyst Rui Cardoso said he wouldn't necessarily make that
conclusion. Cardoso said that, if Nvidia made an order to Taiwan Semiconductor,
it may only mean it's building inventory for the Christmas shopping season. "I
don't think (the rumored chip order) really means anything," he said.
Cardoso added that some investors may see the ATI warning as a sign it's
losing market share to Nvidia, but he doesn't agree. "Pretty much across the
board, desktop, notebook and even in game consoles, ATI is outperfomrming
Nvidia," he said.
Credit Suisse First Boston analyst Tim Mahon said he doesn't believe ATI is
losing market share in the notebook market. "Given that this was probably the
most widely anticipated preannouncement or quarterly miss in our universe, we
believe most of the bad news was baked into the stock,' he said. "With a strong
product cycle ahead from both discrete and integrated solutions, we believe
investors should build positions on weakness."
-By Stuart Weinberg, Dow Jones Newswires; 416-306-2026;
stuart.weinberg@dowjones.com
(END) DOW JONES NEWS 09-10-02
02:24 PM |
