I don't like quarter over quarter comparisons for businesses that have cyclic demand. A Q1FY13 to Q1FY12 would be a better comparison in my opinion.
For this type of business, I agree.
Except for operating expenses everything is down from 4th qtr last year to 1st qtr this year,
In consumer technology you generally don't compare Q4 to Q1. That makes little sense since consumer tech is a cyclical business (ie., consumers buy a lot of things for Xmas holidays, etc. Try comparing the number of iPhone 4S sales for Apple in Q4 2011 and Q1 2012 and see.)
You realize Wallstreet was forecasting earnings of $0.10 per share and NV delivered $0.10 per share. However, stripping out items like acquisition-related costs, earnings totaled $0.16 cents a share.
If Charlie was right that NV is doomed, has unmanageable/'unmanufacturable' 28nm product line, then Q2 guidance would have been lowered because NV would not be able to meet its customer orders. The opposite happened though:
"For the current quarter, the company forecast revenue of $990 million to $1.05 billion, easily topping the $976 million currently expected by analysts polled by Thomson Reuters. Gross margin narrowed to 50.1% from 50.4%."
http://online.wsj.com/article/BT-CO-20120511-709288.html
NV is extremely strong on fundamentals. Company had total cash at hand $3.13 billion, 4.20 as current ratio and on the other side the debt to equity ratio was 0.01 and long-term debt to equity ratio also remained 0.01. It also had a book value per share as $6.77 in the most recent quarter. (In summary what this means it has plenty of cash to pay off its short term obligations (wages, salaries, admin, etc.) and has hardly any long-term debt which normally carries an interest burden - just ask AMD).
That book value # means nothing to the non-finance guys, so here is a better explanation:
“The market is not assigning any value to Tegra, in our view,” writes Shah, “considering $5 in net cash, Intel royalties ($1.00) and a graphics business that is conservatively worth $7-8 per share.” -
Nomura
A number of other professional research firms have also recently commented on NVDA.
o Analysts at Needham & Company reiterated a “buy” rating on shares of NVIDIA in a research note to investors on Wednesday, April 11st.
o Separately, analysts at RBC Capital (NYSE: RY) initiated coverage on shares of NVIDIA in a research note to investors on Wednesday, April 11st. They set an “outperform” rating on the stock.
o Finally, analysts at Cantor Fitzgerald initiated coverage on shares of NVIDIA in a research note to investors on Wednesday, April 4th. They set a “buy” rating and a $20.00 price target on the stock.
NV has strong growth potential because of Tegra as well. It hasn't materialized yet in strong numbers but it takes time to develop a competitive mobile chip for tablets/smartphones. HTC One X for international markets reviewed here at AnandTech is a strong win among top tier headphone providers.
Obviously hardly any of this has an impact on GTX680/690 or 660Ti availability for us, but the constant bashing of NV by Charlie is unwarranted since it actually doesn't align with reality. Sure, for high-end desktop discrete market, AMD has done very well but as Grooveriding found earlier the market for >$300 GPUs is just 3-4% of the pie.
But you know NV also plans to sell C3000 Tesla (aka GTX690) for $3k+
"Chief Executive Jen-Hsen Huang also told investors to "look for exciting news" at an upcoming technology conference." May 15th.
Now if only GK110 was released. :thumbsup: