The future of Nvidia is blurry

Sina Science and technology news Beijing time August 13 morning, for the graphics processing field experts, NVIDIA (NVIDIA) the future looks rather vague. The sale of PC graphics chips is the core of Nvidia's business, but since rivals Intel and AMD have begun to integrate drawing capabilities into their respective chip products, Nvidia's business has been in a state of constant shock. In view of this, in order to stimulate business growth, nvidia with the new Tegra chip into the smartphone and tablet computer market. The launch of the chip has also been a surprise, initially based on Google's Android operating system of the tablet computer was designed to use the chip.　　So the market has high hopes for it, and Nvidia's share price soared earlier this year. However, the chip's lack of stamina, affected by the price also fell. One problem is that few consumers will buy an Android tablet because the ipad is still in the market's dominant position. At the same time, Nvidia faces rivals like Qualcomm's Qualcomm to enter the smartphone chip market.　　In the first and second quarters, sales of Tegra chips were not growing, and this quarter is expected to be difficult to change. But there is good news, too, that independent graphics chips are not disappearing as some have expected. On the contrary, many manufacturers are using NVIDIA chips in PCs that already have built-in graphics to improve their display. Mercury, a market research firm, predicts that Nvidia's graphics chip sales will grow slightly faster than the overall PC market, with growth expected to be around 10% in 2011.　　However, for consumers who do not need to improve their display, they may switch to other PCs with lower prices, so this is also a risk factor. In addition, the NVIDIA second quarter earnings report also exposed some alarming signs, from the Ti Yu newspaper, the shares 13 times times the ratio of a bit high, significantly higher than the intel is now 9 times times the level of the ratio. Although Nvidia's earnings were better than expected in the quarter, it was largely driven by Non-core products.　　In addition, although the company's second quarter profit margin appears to achieve growth, but excluding the impact of the increase in licensing fees, when the quarterly gross margin is actually falling. To sum up, investors need to wait until the future of the Nvidia vision is clearer before investing in the unit. (Puma)