Why hasn't Intel attempted to acquire Nvidia?

[GraphixViolence]

As folks start closing out 401k's and mutuals because of the beating they have been taking and rolling it into "safer" alternatives, NVDA's share price has declined accordingly. NVDA is being hurt by the lack of investor faith in general, and not flaws with the operation of the company itself.
http://www.nasdaq.com/asp/Holdings.asp?symbol=NVDA`&symbol=&selected=NVDA`

I'm not sure what your qualifications are, but I hope you're not in the business of giving investment advice. Or maybe you weren't paying attention when NVDA's latest financial results came out. I'd say revenue 25% below expectations and net profit of approximately zero is not my idea of a healthy company. But that wasn't the worst part. The company also announced a sharp drop in gross margins, while simultaneously indicating (after a bit of coaxing, I might add) that their next generation of products is still at least 1-2 quarters away from reaching production. The market in general has taken a dive, true, but there are a lot of good reasons why NVDA has been falling faster and farther than its competitors:

http://finance.yahoo.com/q?s=NVDA&d=c&k=c1&c=atyt,^ixic&a=v&p=s&t=3m&l=on&z=l&q=l

Calling NVDA overvalued at any time this year is pretty ludicrous, but calling NVDA overvalued compared to direct competitors or even the semi-con market just shows you've done no research, and really shouldnt have commented in the first place.

As of the last time I checked, NVDA's P/E Ratio was 6.6(!!). Vs. other semicon companies, this makes it extremely undervalued, even with the revenue decrease written in. While most semi-con companies are struggling to turn a profit, NVDA is doing so very aggressively.

Look who's talking! I'm sure you're aware that a stock's valuation and therefore its P/E Ratio always take expected future performance into account. When a company's "aggressive" profits suddenly and unexpectedly disappear in the span of a single quarter, that's more than just a sign that the company is experiencing serious issues - it also raises questions about the integrity and competence of that company's management. And especially in today's business world, that's not a company investors are too excited about dealing with.

Currently Nvidia's PEG Ratio is 0.47. Thats undervalued in any market.

Comparing ATI vs. NVDA's fundamental's directly is a great example of a company you should invest in and a company you shouldnt invest in.

While NVDA's is a picture of a company with increasing revenue, and net, even while nearly doubling its R&D expenditures:
http://www.nasdaq.com/asp/extendfund.asp?kind=extendfund&symbol=NVDA&selected=NVDA

ATI is a horror show of losses inspite of itself:
http://www.nasdaq.com/asp/extendfund.asp?kind=extendfund&symbol=ATYT&selected=ATYT

That pretty much says it all.

While NVDA was releasing details on its most disastrous quarter in the last several years, and blaming the results primarily on "softness in the PC market", there were reports that ATI had increased its shipments by 10% in the past quarter:

http://www.digitimes.com/NewsShow/NewsSearch.asp?DocID=E1C0F0A133C2782348256C05004618FC&query=ATI

If the market isn't growing, then that means ATI is gaining market share. Put that together with Nvidia's recent results and their current market share, and it doesn't take a genius to figure out what's happening. Not only that, but with the release of the Radeon 9000 and 9700, they have a new line of high margin products with no real competition from Nvidia. ATI's business prospects are trending up, and NVDA's are trending down. That's why ATI's stock price has been falling at about half the rate of NVDA's over the past few weeks.

If the market turns around, ATI looks clearly to be better positioned. Of course, you could always point to NVDA's past performance and say they're the better buy... but you know what every prospectus says about "past performance", right?

 

[KimB]

While NVDA was releasing details on its most disastrous quarter in the last several years, and blaming the results primarily on "softness in the PC market", there were reports that ATI had increased its shipments by 10% in the past quarter:

To say that NVDA had its "most disastrous quarter in the last several years" isn't terrible, considering pretty much every previous quarter they've had has been spectacular.

There's no reason yet to believe that this is the start of a new trend. It's more likely just a short-term thing that will reverse within six months.

 

[GraphixViolence]

There's no reason yet to believe that this is the start of a new trend. It's more likely just a short-term thing that will reverse within six months.

Maybe, maybe not. There's actually lots of reasons to think this is the start of a new trend, but nothing is certain at this point except that Nvidia's stellar run over the last few years has come to an abrupt and unexpected end. Uncertainty is what kills stock prices, and that's exactly what the latest results have created.