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HEXUS.sharewatch: NVIDIA takes another kicking

by Scott Bicheno on 15 September 2008, 09:24

Tags: NVIDIA (NASDAQ:NVDA)

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After the great sell-off documented in last week's HEXUS.sharewatch, there was some degree of recovery in our latest list, although not among the semiconductor fraternity.While Intel's share price dropped by 2.2 percent and AMD's by 5.7 percent, the big loser was NVIDIA, with a drop of 12.7 percent.

This is the second week in a row we've seen a double figure drop from the graphics giant and it takes NVIDIA's share price to a new three year low of $10.19. It's now hard to bet against NVIDIA's share price dropping below $10, something it hasn't done for four years.

A contributing factor last week will have been the announcement of a class action law suit from NVIDIA investors, alleging that NVIDIA knew about its die/packaging problem long before it officially announced it.

The suit is claiming that, had investors been if full possession of the facts, they may not have bought NVIDIA shares and thus not lost money when the share price plummeted after the die/packaging announcement on 2nd July this year.

Other losers include Apple, which has seen a steady drop in its share price over the past few weeks as senior execs struggle to resolve claims of improper back-dating of stock option grants. Dell's share price appears to be still suffering from its below-expectation quarterly earnings.

Microsoft was the biggest gainer in a week that saw it position itself more strongly in the IPTV market. Yahoo! Also rose by 5.5 percent as it insisted the Google ad deal was going ahead in spite of anti-trust concerns and it released a few new bits and bobs.

We can probably expect to see another general sell-off this week, with the announcements over the weekend that to more major US investment banks are in trouble; Lehman Brothers has filed for bankruptcy and Merrill Lynch is to be bought by Bank of America for $50 billion.

The FTSE 100 is currently around 3 percent down on the news.

 

Company Listing Share price 15/8/08 Share price 31/8/08 Share price 8/9/08 Share price 15/9/08 7-day change Market cap (bn)
AMD AMD 5.64 6.25 5.96 5.62 -5.7% 3.41
Apple AAPL 175.74 173.74 160.18 148.94 -7.0% 131.94
Avnet AVT 31.00 30.16 27.42 26.05 -5.0% 3.92
Dell DELL 25.06 25.21 20.41 19.04 -6.7% 37.29
Google GOOG 510.15 473.78 444.25 437.66 -1.5% 137.62
HP HPQ 45.59 47.33 44.96 46.97 4.5% 115.03
IBM IBM 126.36 124.58 114.33 118.97 4.1% 161.19
Ingram Micro IM 19.95 19.22 17.82 18.05 1.3% 2.99
Intel INTC 24.26 23.59 20.61 20.16 -2.2% 113.34
Microsoft MSFT 27.81 27.94 25.65 27.62 7.7% 252.18
Nvidia NVDA 12.96 13.14 11.67 10.19 -12.7% 5.67
Tech Data TECD 35.24 34.57 32.97 31.40 -4.8% 1.59
Yahoo YHOO 20.44 19.65 18.08 19.08 5.5% 26.44
Dow .DJI 11659.90 11715.18 11220.96 11421.99 1.8% N/A
FTSE 100 .FTSE 5454.80 5601.20 5440.20 5416.70 -0.4% N/A
NASDAQ .IXIC 2452.52 2411.64 2255.88 2261.27 0.2% N/A

 



HEXUS Forums :: 1 Comment

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This, to me, seems like what we would expect in a economic down turn, all the companies that are more consumer and luxury item based (nvidia graphics cards, and apple) are being hit the hardest where as the companies that are classically associated with providing more business based computers are plodding along nicely.