Ati shares drop

[sapphoo]

Is this the beginning of the end? Is ATi going to end up like 3Dfx? Is Nvidia affecting Ati this much?

http://news.cnet.com/news/0-1006-200-4991737.html

 

[BFG10K]

Is ATi going to end up like 3Dfx?

I hope not. Competitition is good for the consumers and I'd hate to see nVidia totally dominate the 3D video card market.

The Radeon's a nice board and I hope the Radeon 2 does well too.

 

[PeAK]

Most of the lack of earnings for ATI is due to the TNT2 displacing Rage 128 chips in OEM systems. Even last quarter, it made for most of Nvidia's profit. The sudden downturn in memory prices has hurt large consumers of memory due to what they bought them for and what they can sell them for today (like locking into a mortgage when the rates are high). The 0.25um chips are on their last legs as OEMs are finally switching over their entry level (business) line ups
to dual monitor support and digital flat panel support.
Radeon is well positioned but the prevailing market conditions even make the likes JDS, Nortel and Cisco
nervous.

 

[Finality]

No big surprise really. In a slowing PC market NVidia actually gained market share. That left only one company to take the burden of the loss. ATI.

I hope they stay in business but they really need to do a 180. Kind of like what AMD did

 

[Orbius]

If the X-Box is a minor success like I think it might be, and the Gamecube is a roaring success like I think it will be, that would be a good boost to Ati.

Nvidia IMO is trying to make up for slowing sales by jacking the price up on their cards. They simply can't sustain the growth they experienced in previous quarters.

Short term Ati is hurting, but this year Ati has a lot of opportunities, especially given the underwhelming nature of the GF3.

 

[NicColt]

Once again ATI has lied to us. Just a couple weeks ago they were indicating that that they would meet expectations. Even analyst were expecting I think it was 3c/share but this was totaly unexpected.

This is much worst than what Nortel did. But in ATI's case, lying and manpulating is normal day to day work.

I have some shares in ATI perhaps that by retirement, I at least hope to buy a friggen hotdog.

Nic

 

[Leon]

<< No big surprise really. In a slowing PC market NVidia actually gained market share. >>



Not only they gained market share, they have been consistenly exceeding the analyst estimates, while others are announcing profit warnings left and right.

In this quarter, NVIDIA revenue very likely to be equal of that ATI (about 230 millions), which is very embarassing for ATI-since they sell boards, integrate chipsets, and set-top-boxes, while NVIDIA only sells 40$-80$ chips.

NVidia keeps chopping...like it or not, it's true

Leon

p.s. Funny how 30 days ago ATI management predicted 300 million &quot;break even&quot; quarter. Talk about misleading....

 

[pidge]

Well, the market is a mess. For the last three quarters, NVIDIA has exceeded expectations and after each quarter results are announced, NVIDIA's stock has gone down. Not good since I own some. Aren't stock prices supposed to go up when a company beats wall street expectations?

 

[Finality]

Leon my thoughts exactly Nvidia is totally dominating the PC market. ATI sells the whole package.

What people need to do to be equivalent is count all the revenue of NVidias OEM board makers. Its probably in the region of 900 Million a quater. Probably more.

 

[Hawk]

Hmmm..maybe they'll go out before the Radeon II and the GameCube, hopefully not.

 

[Leon]

I think what's really hurting ATI now is Radeon LE.

It's was designed strictly for Asian market, but some American/European distributors (like Access Micro) took advantage of it, and selling LE under Radeon DDR name.

Leon

 

[Hawk]

I really doubt that could hurt them, besides, it's kinda like MS and IE, getting everyone to use your product, right? =)

 

[NicColt]

>p.s. Funny how 30 days ago ATI management predicted 300 million &quot;break even&quot; quarter. Talk about misleading

My point exactly, how in the friggen world can they not SEE THIS and a month later screw up this much, they had to know. someone should be put in jail for this. but like I said lying and misleading the public about their products is day to day at ATI, hey why not do it with stock to?? I hope they get their asses kicked by the Financial regulatory agency and have ATI investigated for stock manipulation and lying.

 

[NicColt]

>Analyst Susan Streeter at Sprott Securities has reduced her 12-month target
>price for ATI Technologies Inc. (ATY-TSE) to $4.30 a share from $6.

As if things couldn't get any better, aahhh I feel good now.