| ||Thread Tools|
|8th August 2004, 09:13||#1|
Join Date: Mar 2004
ATI downgraded after Nvidia report
By Brendan January, CBS.MarketWatch.com
Last Update: 12:25 PM ET Aug 6, 2004
NEW YORK (CBS.MW) -- ATI Technologies fell 8.3 percent to $14.60 after Wedbush Morgan downgraded the stock and fellow chip maker Nvidia issued a warning that its second-quarter results would miss expectations.
Wedbush Morgan analyst David Wu cut his rating for ATI (ATYT) to "hold" from "buy" because fourth quarter earnings are likely to disappoint and that competition will be worse than expected.
Wu said the Markham, Ontario, graphics-chip maker faced the same challenges that recently plagued Nvidia (NVDA).
"The price war in mainstream discrete desktops that was so devastating to Nvidia's Q2 FY05 will also have a measurable impact on ATYT's Q4 FY04," said Wu.
ATI holds a 73 percent market share in discrete notebook graphics, but Nvidia is mounting a serious challenge in this segment, said Wu, leading him to see a more competitive environment and lower earnings for ATI in 2005.
The competition is also fierce in the relatively healthy consumer PC and gaming market, said Wu, showing a "volatility of results that have been vividly demonstrated most recently by Nvidia's quarter."
Wu lowered his 2004 earnings estimate for ATI to 75 cents per share and his 2005 estimate to 95 cents per share.
Wu also cut his rating of Nvidia to "hold" from "buy."
Nvidia shares plunged as much as 30 percent late Thursday after the graphics-chip maker missed its second-quarter targets by a wide margin.
I'd wish the price war with OEM will trigger down to the enthusiasts market./
But. history tells me that a guy with a Master Degree in Business is not necessarily "street smart".
Opteron 165 (2) @2.85 1.42 vcore AMD Stock HSF + Chill Vent II
|Thread||Thread Starter||Forum||Replies||Last Post|
|ATI Radeon HD 5870 & 5970 with NVIDIA PhysX||jmke||WebNews||2||11th June 2010 18:44|
|NVIDIA Removes Restriction on ATI GPUs with NVIDIA GPUs Processing PhysX||jmke||WebNews||5||30th May 2010 12:13|
|Driverheaven Nvidia Mobility Modder Released V18.104.22.168||jmke||WebNews||0||6th August 2009 14:12|
|Driver Heaven Mobility Modder.net Public Beta V 0.8.1.0 - XP and Vista Support||jmke||WebNews||0||22nd June 2007 12:19|
|AMD Socket AM2 Chipset Showdown: ATI vs NVIDIA||jmke||WebNews||0||27th May 2006 15:24|
|Nvidia to reveal new plans by end-1Q while ATI schedules new southbridge||jmke||WebNews||0||4th January 2006 13:59|
|Intel's Lakeport threatens Nvidia and ATI||Sidney||WebNews||0||19th July 2005 19:01|
|TC ATI and NVIDIA Optimized Drivers||Da_BoKa||WebNews||0||24th November 2004 14:54|
|New ATI Chief Plots His Strategy As Rivals Intel, Nvidia Loom Large||Sidney||WebNews||0||15th June 2004 00:40|
|Chips From ATI, Broadcom, NVIDIA, Xilinx to Gain Price?||jmke||WebNews||0||11th March 2004 11:50|