Soldato
- Joined
- 30 Nov 2011
- Posts
- 11,375
That has absolutely no effect on their profit margins though, so in now way can a drop in share price cause them to go out of business.
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Hypothetical: NVIDIA folds and leave the GPU market.
- Thread starter bru
- Start date
That has absolutely no effect on their profit margins though, so in now way can a drop in share price cause them to go out of business.
Which is entirely irrelevant. Their share price was based on investors predictioning what Nvidia would be worth in 5+ years time, and the growth was predicated on a massive increase in autonomous cars and such like. Nvidia share to profit ratio was sky high, now it is just extremely high. Investors still love Nvidia and have high faith, but the market has corrected some of the speculative lunacy which is occuring across the tech industry. Nvidiia begin a tech darling at the forefront of many future technologies such as Autonomous driving is more exposed to such fluctuations. AMD's failure to enetrate such marets has limited their share value growth, along with the continued financial issues, is why AMD shares fell much less.
Ignoring anti-monopoly rules, Nvidia could just buy AMD outright, could right a cheque right now and AMD is gone.
It can indirectly, don't underestimate the power of the shareholders to mess things up. The Shareholders main concern is profit and they can put all sorts of pressure on when that profit disappears from a low share price including teaming up and voting\vetoing changes that can cause the company to go out of business, sold on or parts broken up and sold. Sometimes they can even get the boss fired. Plus when the share price is low its easier to be taken out by another company. Not likely in this case at this stage mind you but the share price can have an impact on how the company is run.
Associate
never said it could mate,but nvidia directors will be worried have no doubt about that.
Associate
why is it always nvidia v amd with you,i have asked this question before dp,do you benefit financially or receive free gpus from nvidia ?
Because this forum is always Nvidia vs AMd with a massive slant to AMD as fi they are th messiehs and Nvidia kills puppies. I simply see both companies for what they are.
Do you get free AMD GPUs?
Associate
haha, i wish. i have 1080ti and a gsync monitor, i also own a nvidia shield.