Stock analysts have gotten some information on the inner workings of NVidia, and evidently didn’t like what they saw. Claiming chip yields of 20-30% for the Fermi processors, and a backlog inventory of only 10,000, they’ve downgraded from “Strong Buy” to “Hold” and expect them to lose market share in upcoming quarters.
Needham analyst says “We are downgrading NVIDIA to a Hold and removing our 12-month price target was $22 after a series of channel checks indicating that Fermi is not ramping well and there could be further product delays. Based on our findings NVIDIA has very limited supply of Fermi desktop notebook parts and yields remain poor at around 20-30 %”
Of course, this could be a big win for AMD who might find themselves with another 6-12 months of effectively no competition.
via StreetInsider.com – Update – Needham & Company Downgrades NVIDIA (NVDA) to Hold; Concerns of Fermi Ramp and Gross Margin Risk. via XBitLabs and ExPreview
@GH NVidia isn’t really “short” of chips either.. (According to these reports, which NVidia denies) they’re short of chips that meet their full specs.
As AMD has been at this longer, they’ve had more time to work out the kinks in the process.
*TSMC sorry.
Isn’t AMD short of chips too? If my memory is accurate, AMD uses TMSC as well and nVidia actually was able to secure the bulk of the manufacturing chips from TMSC.
@late is a turd. Keep up the good work RH.
@late
The shareholders have a right to now when a company can’t yield product.
@late hrm.. While the analyst’s report is from last week, yes, I haven’t seen it published anywhere until today. I fail to see how that causes me to ‘lose credibility’ or shows a “lack of integrity”.
Maybe it shows I don’t spend my days trolling the internet for Stock news… Which kinda makes sense as this is not a Finance website.
This is already one week old,felt the need to rehash it?
Is it “retarded” or “lack of integrity”?
Anyways you lost credibility here.