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HEXUS.sharewatch: NVIDIA and AMD show big gains

by Scott Bicheno on 18 August 2008, 13:49

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As we acknowledged in our review of the week, the tech news last week was dominated by Intel, NVIDIA and AMD. In the case of the latter two this news seems to have been well received by investors as they both saw their share price rise significantly.

The big winner was NVIDIA, which saw its shares jump by 17.8 percent. Funnily enough this came in the same week that it announced its first quarterly loss for six years, brought about by increased competition from AMD and having to write off nearly $200 million to cover its manufacturing issues.

It's fair to assume that all of this was already priced into NVIDIA's shares so the revelation of the extent of the write off coupled with NVIDIA announcing a boost to its share buyback programme has actually led to a degree of recovery in NVIDIA's shares.

AMD continues to get positive coverage on the launch of its new, high-end graphics product - the HD 4870 X2 - and has also launched some new CPUs and lowered the prices of others so the momentum of the rally we saw from it last week continues.