Nvidia's R&D spending examined

jmke · 16th February 2010, 16:39

WHAT DO YOU DO when your company does not have a competitive product in the most profitable market segment, your competitors are developing products that will kill your share in the high volume segments and the puppy in the pipeline is not looking that promising?

You cut expenditures and save cash. Lots of cash. And then you invest a lot on R&D or acquisitions to open new market frontiers for you. Nvidia (NYSE: NVDA) got the first part right. It saved cash and reduced expenditures, just like almost every other company has been in this market. The catch is in the second part. It reduced its R&D spending. No, really, even with the puppy late and without a single competitive product on the market, it actually cut down on R&D spending.

http://www.semiaccurate.com/2010/02/...ding-examined/

16th February 2010, 16:39	#1
jmke Madshrimp Join Date: May 2002 Location: 7090/Belgium Posts: 79,021	Nvidia's R&D spending examined WHAT DO YOU DO when your company does not have a competitive product in the most profitable market segment, your competitors are developing products that will kill your share in the high volume segments and the puppy in the pipeline is not looking that promising? You cut expenditures and save cash. Lots of cash. And then you invest a lot on R&D or acquisitions to open new market frontiers for you. Nvidia (NYSE: NVDA) got the first part right. It saved cash and reduced expenditures, just like almost every other company has been in this market. The catch is in the second part. It reduced its R&D spending. No, really, even with the puppy late and without a single competitive product on the market, it actually cut down on R&D spending. http://www.semiaccurate.com/2010/02/...ding-examined/ __________________

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