wrote this for a school assignment on why to invest in NVidia

[slainfoe]

Why to buy NVIDIA stock now.

NVIDIA stock has taken a tumble to $9 a share almost. This is due to bad earnings report issued just the other day. The second quarter sales were less then predicted due to market share loss from ATI and delays in new technology from Intel. A little history follows.
NVIDIA used to be top dog in the video card industry until they released the FX series of video cards. ATI products were superior by a decent amount in things such as pixel shaders and vertex shaders. Pixel shaders and vertex shaders are programming instructions built into the video card GPU that allow things such as shadows to be displayed in games. ATI performance with its Radeon 9600 – 9800 cards were superior to NVIDIA’s FX series cards. As the reviews came out ATI cards soon started being sold more then Nvidia’s.
Then enters Nvidia 6800 series. The 6800 series of cards reestablishes NVIDIA as a great video card maker. Introduced with the 6800 series is the ability to use DirectX 9.0C which is the newest version of Microsoft’s graphical API. ATI countered with its X800 line which lacks Directx 9.0C support but performs as good as NVIDIA cards. This time around if you want future support you buy NVIDIA.
Problems plaguing both companies are the yields on the manufacturing of the cards and meeting market demand. A month ago it was not uncommon to find the NVIDIA cards being sold for $100 markups by online retailers and still being sold out in minutes. ATI still has yet to bring the X800 to market in quantity as I have found more NVIDIA cards for sale then ATI. I was lucky to snatch up a NVIDIA 6800 ultra top of the line card for the list of $499 from best buy.
Now enters ID Software’s Doom 3. For those of you who don’t know anything about Doom 3 or ID software here’s a brief history. In 1993 they released Doom. Doom revolutionized the gaming industry with its fast paced run around shooting demon play style. The game was the first I believe to enter the view point of the player and not side scroll. Doom 2 shortly followed and ID Software went down in history as the best FPS game designer with revolutionary graphic engines. Quake and few other franchises followed further cementing ID’s role. Doom 3 was announced around 3 or 4 years ago and has been in development for 4 years. On August 3rd, 2004 it was released. Most of the industry refers to Doom 3 as the most anticipated game in years. I refer to it as the most anticipated game of the century to date.
Nvidia and Doom 3. Prior to release ID software invited reviewers to its company to benchmark Doom 3. The results surprised everyone. NVIDIA cards priced at $400 beat ATI cards priced at $500. This leads to the theory that NVIDIA 3rd and 4th quarter revenues will be greater then what they were due to correlation between sales of Doom 3 and new computer systems that are capable of playing it with its full settings. This is my whole point. NVIDIA sales will increase thanks to Doom 3, and the release of several other new games such as Everquest 2 which will feature a plays best on NVIDIA logo on the box and websites.
I personally invested $3500 in a new computer and $500 in a NVIDIA 6800 Ultra just so I could play Doom 3 and Everquest 2 at the best possible with hardware that is out now. As supplies start to increase of NVIDIA’s new 6800 series of graphic cards so will sales. Intel also just released its new PCI Express motherboards which will also drive NVIDIA sales since the new boards require new types of graphic card plugin slots.

[peter_storm]

Assignment for what subject? I would advise you not to use "top dog" or other such terms in any school work.

[stncttr908]

Assignment for what subject? I would advise you not to use "top dog" or other such terms in any school work.
Yes. Replace that with "market leader" or something more official sounding.

[peter_storm]

Having read through, I must say I don't like the way it is written. I am guessing you are early teens? Your essay (although rather short) has a "magazine" quality to it, and as such would not be suitable for a serious item of graded coursework. I would advise you to read books. People who enjoy reading a script that is well written, features elevated diction, and "flows", ultimately these people with be grading you with a letter that can make or break your life. I am English, I am speaking from an English schooling perspective, and conversational pieces are generally not well graded.

[slainfoe]

actually it's for a finance class in business management degree. and yes i am from america but failed english once in high school :) I myself like things that sound more down to earth and crude. but anyways my english and writing asside, think the points have weight ?

[TheTaz]

actually it's for a finance class in business management degree. and yes i am from america but failed english once in high school :) I myself like things that sound more down to earth and crude. but anyways my english and writing asside, think the points have weight ?

Use MS Word or something. Use the Spell Checker. Use the Grammar checker.
Have someone proofread for you. The spell checker won't catch everything, especially valid words used wrong. You put "then" in a lot of places that should be "than", and "then" is a valid word. Just because you have poor English skills, doesn't mean there aren't tools out there that can help, especially in this day and age. ;)

As far as your points, they are short and sweet. Not entirely sure about the accuracy of one generation of good cards being enough to invest in a company. There are many other factors of business besides being "the market leader" that affects stock prices. For Example:

Say nVidia has 2 Generations of having superior products.
The stocks go up a little as the the quarterly sales reports / profit margins are favorable.
Say some small company sues nVidia for some Intelectual Property dispute, and wins.
The stocks plummet.

My point is... there is more to investing than just product superiority of a company. Maybe the CFO is "padding" reports? Maybe the company is wasting funds and can do things 10x more efficient? (mismanagement), etc. etc. etc. Either way... buying stock is a "roll of the dice". You never know what mis-haps can kill stock prices. You are investing in a COMPANY, NOT their product line.

Another Example:

Phillip Morris would seem like a wise investment, right? There are tons of people that are hooked on Tobbaco. But even with a huge amount of sales / income... between the extra taxes placed on tobacco products, the lawsuits, and the government anti-tobacco advertising campaign... The stocks go down every time someone get's and "itch" against Phillip Morris.

Anyhow... that's my 2 cents.

Regards,

Taz

[RobHague]

It reads like an NVIDIA PR statement rather than a stock/investment tip.


"NVIDIA sales will increase thanks to Doom 3, and the release of several other new games such as Everquest 2 which will feature a plays best on NVIDIA logo on the box and websites."



"This time around if you want future support you buy NVIDIA."


Once Doom3 is completed, finnished - Half-Life 2 arrives on the scene and other games what then? There might be a small boom in sales for the moment due to the good reviews the Geforce is getting with Doom3.. but ATi isnt taking it laying down. So once things start to 'even' up all and the game sales hit their peaks it will die down and even out... then it will have to rely on its stregth as a gaming card for other titles. Some maybe not specifically taking advantage of the NV40's strengths.

Half-Life 2 is a BIG title too, possibly bigger than Doom3 since there will be a new version of Counter-Strike.... that will generate the same kind of "large sales" for ATI cards since they "support it" and the ATI logo will be plastered allover the box and on websites.

There have always been "The way its meant to be played" logo's on game box's too, but that didnt help them with the FX series. And BEST POSSIBLE for Doom3 is about 10-20fps? It's all very subjective IMO as to what is "best possible" and if "future proof" is really SM 3.0... the main feature the NV40 has over the X800 series... there is a lot of doubt, and mud sticks.

A reason to invest in NVIDIA stock would be because of its low price per share, not because it's suddenly gonna become the HUGE ALL POWERFUL market leader bar none and raise 2000% or something... which is how it came across while reading it. :)

[saturnotaku]

I myself like things that sound more down to earth and crude. but anyways my english and writing asside, think the points have weight ?

Throughout my years of education, that sort of writing style is all very well and good in a creative writing class but it simply doesn't fly for other proessional parts of academia. It simply doesn't look like you put a lot of time or effort into that work. Scrap it and start over - make your presentation as professional as you possibly can. If you need to be persuasive in this essay, be so without sounding like a PR person. Go over in your mind counterpoints someone might bring up and try to answer those as well as you can within your writing.

And last, as has been mentioned here, proofread, proofread and then have someone else proofread. A second and third pair of eyes will always catch something or ask questions you never would have thought of on your own.

Good luck.