Stock is oversold. Growth in US may be stagnant, but expect growing demand from other countries, especially since weak dollar makes NVDA chips attractive. Management is very competent, CEO was a chip designer himself. Main competitor AMD has hit a rough patch and is too busy bleeding cash to make ATI competetive. Not too mention, low stock price makes it attractive buyout target, especially given its market postition & technological expertise. Given stalling semiconductor market, M&A could be attractive growth strategy. At a $121B market cap, Intel could easily absorb NVDA's $6b (Keep in mind this could draw the Government's attention). Invest in NVDA for the long term, but you may be able to cash out early if they are acquired.
$11.055 (07/25/08)
