Remembering TCPaul, 2016-2019

Fans of NVDA - good buy time? /news/2019/01/02/nvidia-c wutwutwut01/03/19
I'm long AMD which has a market cap 4.5x less than NVDA. I chicagoloser01/03/19
"AMD is valued so low right now " Thanks for all the info wutwutwut01/03/19
I truly want to buy NVDA. The upside potential is so tremend brokelawyer01/03/19
wutwutwut (Jan 3, 2019 - 10:20 am)
(" Lawsuit filed by Schall Law Firm and Glancy Prongay & Murray .... judge is expected to make a final decision about the complaint's class-action status on Feb. 19. The firms are seeking additional plaintiffs, investors who say they have lost at least $100,000. Nvidia, which has made hardware specifically for crypto-currency miners, missed its recent earnings target in November due in part to a sharp drop in the valuation of Bitcoin... left Nvidia with an oversupply of crypto hardware, which it has had to offload at discount prices. “The crypto hangover lasted longer than we expected,” Huang said on a conference call with analysts last month. Nvidia shares plunged last month after it warned investors that it would likely sell about $2.7 billion in chips in the holiday quarter — far short of the $3.4 billion that analysts had expected.")

("Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against NVIDIA ...alleged violations of the federal securities laws .. made materially false and/or misleading statements ... assured shareholders that it followed the market closely and could adjust to the rapid cryptocurrency market changes. Defendants hyped that NVIDIA and its executives are "masters at managing our channel, and we understand the channel very well." ... Consequently, the complaint alleges that NVIDIA shares traded at artificially inflated prices throughout the Class Period.")

How do these suits usually turn out? I had the impression they're kind of hard to prove, absent some smoking gun emails flying around the C-Suite.

But I'm also guessing they're a large distraction to business. So do they tend to settle early?

Meanwhile, NVDA share price is approaching its 52-week low (which it just hit last Thursday). BW, is this a good buy time?

chicagoloser (Jan 3, 2019 - 10:50 am)

I'm long AMD which has a market cap 4.5x less than NVDA. I believe AMD is undervalued because it's the only serious competitor to both INTC and NVDA, so any decent product AMD introduces will be well received by the market and will in turn put pressure on the lucrative margins now enjoyed by INTC and NVDA.

The most recent example is AMD's Ryzen/Epyc cpus which threatens Intel's stranglehold of the datacenter marker where it previously had a 99% market share but no longer. On the GPU side, once AMD builds a decent alternative to NVDA then both gamers and IoT providers (i.e. driverless car makers) are going to hop onboard the AMD train. AMD is valued so low right now that any gain in market share will meaningfully lift the stock.

wutwutwut (Jan 3, 2019 - 12:29 pm)

"AMD is valued so low right now "

Thanks for all the info, and I was following you up until you got to the "valuation low" thing for AMD.

Its P/E is on the order of 4 times that of either INTC or NVDA; that doesn't seem like a low valuation.

brokelawyer (Jan 3, 2019 - 11:47 am)

I truly want to buy NVDA. The upside potential is so tremendous. But I just don’t have the stomach for this level of volatility.

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