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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: JAG who wrote (12770)	5/19/1999 4:46:00 PM
From: Chip Anderson	Read Replies (2) \| Respond to of 16960

I bought NVDA stock today for the first time. Why, in heavens name, should we care? You must have us confused with the nVIDIA thread. Please go try and get that thing fired up why don't you. Chip

To: JAG who wrote (12770)	5/19/1999 5:53:00 PM
From: Sun Tzu	Respond to of 16960

OT (kinda) -- >> I bought NVDA stock today for the first time. I can't fault you on that. They've done a great job. But I think the valuations are much more compelling for TDFX. As a rule, the top dog in the graphics sector gets a multiple of 2.5~3.5 (forward) revenue and the others get to be 0.8~1.8 revenue. BTW, NVDA's forward PE is not too bad (~23). Here is some notes from a research report that came out today: - NVIDIA's great execution with TNT2 should enable the company to continue to land a large number of design wins, and to further penetrate the leading PC OEMs. Therefore, we are increasing our earnings estimates for fiscal 2000 from $0.80 to $0.85 per share, and for fiscal 2001 from $1.05 to $1.15 per share. We continue to maintain an Outperform rating and a stock-price target of $30 on NVDA. - We believe the company's ability to gain market share was driven by the advancement of a new product cycle. While TNT shipments accounted for a majority of first-quarter revenues, the well-received TNT2 product launch has enabled NVIDIA to further penetrate the treasured tier-one PC OEM accounts. Given the scalability of TNT2, with the Ultra product for workstations and the enthusiast user, and the Vanta product for the cost-sensitive end of the consumer market, NVIDIA can cover the entire spectrum of desktop computers with the RIVA TNT2 architecture. As an example, NVIDIA is now represented in each of Dell's desktop product lines: Dimension, OptiPlex, and Precision. The company also recently announced design wins at Compaq, Gateway, Micron, Hewlett-Packard, and other top PC manufacturers. NVIDIA should benefit as the Intel Pentium III product cycle unfolds, and additional OEM design wins will likely be announced as Intel's 0.18-micron Pentium IIIs are introduced with its 820 (Camino) chipset in September. - Although the PC graphics business is characterized by tough competition, strict downward pricing pressure, and short, six-month product cycles, 3D graphics is a fast growing market which should prove to be lucrative for any company that emerges to dominate the industry. NVIDIA could be that company as it appears to be distancing itself from competitors such as ATI, S3, and 3dfx. Excellent manufacturing yields have helped NVIDIA drive an improved cost structure, while a broad product line has enabled the company to withstand intense pricing pressure. Although this report is about nVidia, a good part of it is relevant to 3dfx. As well, I think knowing the competition is a good part of doing one's due diligence. As such I welcome informative comments by everyone. Sun Tzu P.S. Over time, you will get much better response if you stop be so confrontational from time to time.