Friday, February 24th 2017
NVIDIA Stock Tumbles Amidst Analyst Talk of Gaming's Decline
NVIDIA Corp. stock fell a record 10% in one day amidst a move to bearish ratings by two prominent Wall Street stock analysts.
Analysts Romit Shah and Ambrish Srivastava both downgraded NVIDIA's stock rating (from "buy" to "reduce" and "perform" to "underperform" respectively) citing concerns over "valuation and a tempered outlook for gaming."
It is worth noting that NVIDIA stock has tripled in value over the last year, so this may represent a return to reality more than a harbinger of doom for the company's outlook. Regardless, it is the biggest drop in NVIDIA's daily stock price since it went public in 1999, and to see its status downgraded due to "a tempered outlook for gaming" is not the kind of reason gaming enthusiasts like to hear.
Source:
Marketwatch
Analysts Romit Shah and Ambrish Srivastava both downgraded NVIDIA's stock rating (from "buy" to "reduce" and "perform" to "underperform" respectively) citing concerns over "valuation and a tempered outlook for gaming."
97 Comments on NVIDIA Stock Tumbles Amidst Analyst Talk of Gaming's Decline
"Ngreedia" is a title earned, clearly.
Its sad when you could buy a GTX 1060 or an RX480 for the price of 2 games (EA).
Battlefield Ultimate Deluxe Edition (Premium) 130$
Any other Super Deluxe version whatever BS 99$
The Titan or 1080Ti will not bail Nvidia out if any or both of these companies succeed in the target(ed) areas.
Nvidia makes GPUs and doesn't do that well at everything else. They're losing their ARM invasion attempt. They're trying something with cars and deep learning but only their powerpoint slides look good on that. They have their supercomputing stuff. They achieve all this with just ONE product that they keep improving and adapting for different purposes. Nvidia is a lot of things, but its not a 'lean' company. It is forced to focus on this one product and extract everything they can from it. That represents risk.
Meanwhile, since Maxwell they haven't brought anything new. Pascal is just Maxwell v2. Tegra won't fly. And Volta is still a distant fantasy. We've all been looking at AMD and its stagnating GPU offerings, but what about Nvidia? They may have 'the fastest' but perhaps they too, are now a bit out of ideas? Don't forget that we were promised something different with Pascal, instead they just postponed half of Maxwell's improvements for a full gen, because they could still extract +30% perf across the whole product stack.
Meanwhile, gaming will be doing fine. VR, not so much. Perhaps that is the 'gaming' these analysts refer to, because Nvidia IS the only one offering decent GPU for that high performance level at this time and 1080p is still the dominant res for everyone else, in which case their latest GPU range really has very little to offer. That alongside a reality check of the current stock price I think is what's happening here.
The 1080ti won't bail anyone out btw, that's just something Nvidia does for giggles ever since they launched the first Titan. They have the big die anyway, why not slap some cheap memory around it and resell it for premium prices. That SKU isn't and never was or will be a product primarily designed for gaming. Look at where it came from and what it is today, stripped of everything that makes it what it was originally.
Gaming in decline....
No. It's not.
As for other things, yes - absolutely true. But the actual surge was off the back of the AI investment and touting. As little as Nvidia's income is from AI and autonomous vehicles, it was that which pumped up their share price - not so much the gfx division.
The Ryzen APU & Vega GPU both will hit Nvidia hard, in gaming, especially if there's an HBM2 APU released later in the year, though I'd expect them to debut no sooner than 2018.
Now these analyst might be misguided, but not totally wrong either. For many of the topics, complaint, etc. discussed here are concerning. Now if some of their (analysts) concerns comes to fruition, the upside is Nvidia might find the need to get in and work, not be so much "we do what we want and we still get more of our nut!" This could be the little dose of "humble-pie" that could make Nvidia be concerned they need to listen, more determined to hold market share and might mean some price reconsideration, to show competitiveness. I see it as good.
Some will get triggered, but I dont care.
I play equally in both camps' GPU's so I will call these two asshats out as having an agenda.
also, the card price didnt exactly 'increase' www.techpowerup.com/forums/threads/nvidia-to-make-even-more-fe-cards-could-overall-prices-rise.230128/page-3#post-3599748did you not check amd? 6x increase in under a year!
Let´s be honest, 95% of PC revenue comes from free to play, Moba, RTS, MMO, CS:GO titles. Low demanding games where most of the userbase is.
The userbase running Watch Dogs 2 or some other ubisoft/activision console port at 1440p 144hz extra textures, by brute forcing it with a 500€ GPU, are a ... NICHE.
Of course it appears you are unaware of the sheer numbers and near balance between PC's and consoles, so I can understand your misplaced statement.
(I think that you are mostly right, but I also think that these two jokers are playing the market...look at their previous recommendations)