NVIDIA's Long-Term Prospects Mean It's Currently Undervalued (at Seeking Alpha)

by: Value Geek posted on: July 25, 2008 | about stocks: NVDA Despite having execution problems and ferocious competition (detailed in my last article), I still think NVIDIA Corp. will still be at least moderately profitable in the long-term, and the 30% drop in its stock price following one bad quarter is an over-reaction. NVDA has several factors in its favor. NVDA is unlikely to lose market share, and might even gain some share. Both technological and market factors account for this. Technologically, GPU chips are second only to CPUs in complexity, meaning that competition from Asian fabs are unlikely, and the only competition is likely to remain ATI/AMD and Intel . ATI has a decent reputation with its Radeon cards, but its parent AMD is bleeding cash at an unsustainable clip, and may soon find itself unable to support R&D... [read full story]