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> Have their costs unexpectedly shot up on their two-year-old manufacturing processes? The price doesn't reflect what it costs them, it reflects what they beli
by gnode 8y ago
> Have their costs unexpectedly shot up on their two-year-old manufacturing processes?
The price doesn't reflect what it costs them, it reflects what they believe they'll make the largest profit margin on.
> Or did they just bank on the crypto bubble...
It's investors that were banking on that. Share price doesn't say anything about the success of a company (except for ability to raise money), it's just a consensus of estimates about future value.
NVidia are still very successful in their original niche of making graphics cards, and haven't sacrificed this in favour of crypto.
- wlesieutre 8y agoNvidia was banking on the crypto bubble too, they overproduced graphics cards and then took 300,000 of them back from an OEM partner because the market was saturated. https://seekingalpha.com/article/4182662-nvidia-appears-gpu-inventory-problem https://seekingalpha.com/article/4182662-nvidia-appears-gpu-... To me, that says "priced too high," they might be making great margins but they couldn't sell all of them. I probably would've bought one if the price were more in line with the GTX 900 series. At this point I'm hanging on to see how AMD looks, either for getting one of their new cards or hoping they can put some pricing pressure on Nvidia.