Nvidia, ARM Holdings Fall After Barron's Report
02/22 03:25 PM
03:25 PM Eastern Standard Time, 02/22/2011 (MidnightTrader) -- Nvidia (NVDA:$23.23,00$-2.40,00-9.36%) and ARM Holdings (ARMH:$27.94,00$-2.54,00-8.33%) are down after Barron's reports that a coming glut of tablet computers could hurt these companies and other chip makers. ARMH was last down 8.07% and NVDA down 9.17%. Price: 23.28, Change: -2.35 , Percent Change: -9.17
my comment: Yes, there will be plenty of tablets that won't sell in the coming year. But I don't think that most of these companies will just drop attempts to enter the tablet space. Not just for consumers and entertainment: according to Apple, 80% of S&P500 companies say that they are evaluating how they will use them. The form factor has too much potential for mobile users, IMHO, and there are a lot of mobile users out there. Sure, smartphones will be the instrument of choice for many people. But the screen size of smartphones is too small for many uses. A huge number of these things will be sold over the next few years, and both phone and computer vendors will enter the competition, as tablets are related to both of them. The stocks--especially NVDA and ARMH--were due for some profit taking, they have had a huge run over the past few months. But to say that there will be glut and leave it at that is silly. On the other hand, I haven't read the actual Barrons' article, so maybe they said more than that. |
