Nvidia shows signs in [2019]

Discussion in 'Graphics and Semiconductor Industry' started by BRiT, Jan 5, 2019.

  1. BRiT

    BRiT (╯°□°)╯
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    Oooof. Some lawyers sure love to chase ambulances looking for easy money. Who could have foreseen cryptocurrency market being fickle?

    https://hothardware.com/news/nvidia-faces-class-action-lawsuit-cryptocurrency-implosion

    A law firm in Los Angeles, California is encouraging investors who lost in excess of $100,000 by pouring money into NVIDIA's stock to contact the agency for participation in a possible class-action lawsuit. It's the position of the complaint that NVIDIA mislead shareholders by overstating its ability to weather the crumbling of the cryptocurrency market, as it pertains to mining with GPUs.

    "[NVIDIA] made false and misleading statements to the market. NVIDIA touted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary. The Company claimed to be 'masters at managing our channel, and we understand the channel very well'. NVIDIA also claimed to the market that any drop off in demand for its GPUs amongst cryptocurrency miners would not negatively impact the Company’s business because of strong demand for GPUs from the gaming market," the complaint states.

    "Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about NVIDIA, investors suffered damages," the complaint continues.

    As many of you reading this might already be aware, cryptocurrency mining bolstered the demand for GPUs for much of last year. Both AMD and NVIDIA benefited from this to some extent. Even though gamers ultimately suffered for a period of time due to a shortage of graphics cards and inflated prices, the lawsuit doesn't take issue with this.

    What the potential class-action suit does take issue with is the steep decline in NVIDIA's share price after the cryptocurrency bubble burst. For the most part, it stopped becoming profitable to mine cryptocurrencies like Ethereum using GPUs towards the end of 2018.

    Whether entirely related or not, NVIDIA's share price has seen a precipitous drop over the past few months. The company is currently trading at $133.50, which is down from over $200 in mid-November, and much lower than its high of nearly $300 in early October.

    As a result, the Schall Law Firm is inviting shareholders who purchased shares in NVIDIA between August 10, 2017 and November 15, 2018 to contact the firm before February 19, 2019, to participate in the lawsuit and "recover your losses."
     
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  2. nutball

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    I love how investors these days feel entitled to make money regardless of their own stupidity. Stock goes up, sell. Stock goes down, sue.

    When will the class-action lawsuit bubble burst I wonder? Will we ever see class-action lawsuits against class-action lawsuit lawyers, on the grounds that they're arseholes?
     
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  3. entity279

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    That's not a bubble. Legislation allows it, so it will press on till oblivion. There will always be technicalities to exploit sadly.

    So one could restrict class actions or lawyers fishing for random customers also by legislation. Question is , would that restriction have some side effects, besides of getting rid of this ridiculous lawsuits? Like getting rid of trials that punish companies genuinely hurting their customers?
     
  4. Samwell

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    If they win this lawsuit against nvidia, it will make earnings calls even more useless. Companys will be even more scared to make any comments on segments, which aren't easy to forecast. In the end this just leads to companys giving less information to investors. Nvidias stock didn't loose 50% because the fundamentals changed totally, but because it's been a total stock bubble which bursted.
     
  5. MDolenc

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    Some quick math: ETH hash rate went from ~90 TH/s in August 2017 to ~290 TH/s in August 2018. At 20MH/s for GTX 1060 that's about 10M GPUs added in a year. Reported NV gaming revenue for Q3 FY 2019 is $1764M. If average NV price for GPU is $100 that makes it 17M GPUs per quarter.
    So what am I missing? :)
     
  6. CaptainGinger

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  7. Silent_Buddha

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    Are there even any modern NV GPUs under 100 USD? The GTX 1050 averages about 130+ USD and the 1060 averages over 200 USD.

    I'd say the average for NV GPUs is likely closer to 400 USD or higher. Granted that's Retail pricing (only looked at Newegg really fast) but retail margins aren't super high for low end GPUs (outside of the Crypto bubble), so NV's cut of that is still going to be over 300+ USD on average.

    Regards,
    SB
     
  8. MDolenc

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    I meant GPU only. But I missed that there's the option that AIBs can get a bundle with memory included. So yeah, my guess work was off and would be hard to refine.
    According to JPR 9.9M AIB cards were shipped in Q3 2019 and down 36% year to year.
     
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  9. pharma

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    January 24, 2019
     
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  10. Kaotik

    Kaotik Drunk Member
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    https://nvidianews.nvidia.com/news/...idance-for-fourth-quarter-of-fiscal-year-2019

    NVIDIA issues revenue warning, down 0,5 billion USD. Apparently RTX cards aren't selling and expected datacenter deals are falling through

     
  11. Malo

    Malo Yak Mechanicum
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    No one could have foreseen that! :roll:
     
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  12. Kaotik

    Kaotik Drunk Member
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    To quote a friend (translated):
    NVIDIA: Sadly we noticed that some of our customers in fact still have brain functions.
     
  13. pharma

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    TSMC Fab 14: Wrong chemical usage renders thousands of wafers unusable for NVIDIA (and others)
    https://www.guru3d.com/news-story/t...-wafers-unusable-for-nvidia-(and-others).html
     
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  14. pharma

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    MLPerf Benchmark results
    December 2018
    https://www.zdnet.com/article/mlperf-benchmark-results-showcase-nvidias-top-ai-training-times/
     
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  15. Clukos

    Clukos Bloodborne 2 when?
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    It Just Works™
     
  16. Kaotik

    Kaotik Drunk Member
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    https://www.techspot.com/news/78548...bout-cryptocurrency-earnings-avoid-stock.html

     
  17. Davros

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    Major Shareholder Abandons Nvidia After Disappointing Year - In a report via PCGamesN,
    Japanese Investment company Softbank has officially sold off their entire stock in the company. An investor who was believed to be the graphics card giants 4th largest private investor. It should be noted, for the sake of fairness, that the company had been for well over a year scaling back their investment in Nvidia. With the recent downturn in the company though, and the significant hit to the share price, Softbank is believed to have lost around £2.7bn. To put the share price drop into context we would need to give you some figures. The current Nvidia share price is around $155. In late 2017, however, this was around $290. With a near 50% drop in around 12-months is pretty shocking by any standard.
     
  18. BRiT

    BRiT (╯°□°)╯
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    Buy low, sell high. If anyone believes in their [Nvidia] future they should buy in when it's low.
     
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  19. nutball

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    So basically, NVIDIA were over-valued because BITCURRENCY, and since then their share price has drifted back towards a more sane valuation?
     
  20. Alexko

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    Perhaps it should be noted that SoftBank now owns ARM. It's not impossible that they'd want to disinvest from NVIDIA in part because they may see the company as their competition.
     
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