Crookes at work again. In that article they didn't note of ATis margins droping wooping 520 points, last time they said ATI is a better short term play than Nvidia, lol, that is exactly when Nvidia took off. The fact that ATI missed on revenue is not important, bottom line is they missed on gross margins on top of revenue. Also they will have nothing to compeete witn Nvidia in the current qtr in enthusaist (XFIRE and SLI) and high end(G70 and X850PE< lol> (I like that PE(Platinum Edition), lol), and I bet ATI will MISS AGAIN both on GM(will be forced to drop prices on all their cards from top to bottom, forced by Nvidia) and revenue. Recalculate EPS again and suddenly BANG!! stock is in single digits and still overpriced. Example with last year Nvidia is absolutely irrelevant (SWIR did drop too but all longs choose the best scenario,lol, yet again, lol). Go ahead load up to your eyeballs with "cheap" ATI shares. Yes they are cheap, but I see no single reason for them not to get cheaper in a couple of months). Yet Forbes BS article will never look "deeper" than crookes want it to.
You forget a few little things: - XBOX360 uses Unified Shader Model....you will hear a lot more about this as Longhorn approaches. ATI has the technology today. - PS3 and Cell are already being reported as being way below performance expectations. - ATI is more diversified than nVidia in Digital TV that is taking off - ATI has many more phone design wins - ATI has the 3DMark2005 performance crown...don't see a G70 there. - ATI still leads the market in PCIexpress adoption...as time passes, more and more OEMs will move completely to PCIexpress
It's a long road, and ultimately, if I were ATI or nVidia, I would start focusing on a strategy to better compete with Intel. Integrated graphics are rapidly chewing into both of their market shares.
what ATI told us already in the price. The price of the stock usually reflect what's gonna happen. There'll be good news for ATI starting from the end of october. By september, the price will already be up.
right now, ati is trading at 73% market cap of nvda. That's a huge discount. The gap must be narrowed soon.