Friday, February 10th 2012

Sterne Agee Downgrades NVIDIA

Once Company of The Year by Forbes, NVIDIA is now having a hard time convincing 111-year old investment firm Sterne Agee that it is as much of a company to look out for. The firm downgraded NVIDIA from its coveted "Catalyst Driven Idea List," claiming that NVIDIA lacks the kind of innovation looking into the foreseeable future, to remain in that list. Says Sterne Agee:
"We had put NVDA on our Catalyst Driven Idea list on January 3 ahead of anticipated catalysts at CES and Mobile World Congress (MWC). While there were some catalysts at CES with the quad-core Tegra 3 integrating Touch on its Ninja 5th core, CES also saw a Win8 Tablet prototype running an NVDA Tegra. While we believe there could be more catalysts with MWC February 27, we believe NVDA shares are fairly valued here. MWC catalysts could include Tegra 3 handsets with Icera baseband and some 7-10 tablets running Android Ice Cream Sandwich.

Sterne Agee's commentary continues.

Overall PCs Continue to be Weak & New Tablet Ramps are Just Getting Announced - We believe near term PCs are seasonally weaker, and while HDD supply is improving, we believe PC demand continues to be weak. Also for NVDA, Tegra 2 into tablets is ramping down, and while the company could have new Tegra 3 design wins into tablets, we believe the production ramp on any new tablets in the April Q will not be as material.

Discrete GPU Competition -- With AMD ramping 28-nm Radeon HD 7970 which delivers 5-30% better graphics performance than competitor GPUs on the market, paired with integrated APU Llano and INTC's Ivy Bridge-Haswell, we continue to believe the core discrete GPU market could have some structural challenges."
NVDA has been dull, since. This development adds to the pressure on the company to come up with a killer new product portfolio, and increased innovation. The full report can be accessed here.Source: VR-Zone, Image Courtesy Forbes
Add your own comment

23 Comments on Sterne Agee Downgrades NVIDIA

#1
btarunr
Editor & Senior Moderator
A lesson to take home for AMD is:

"It pays to have the fastest chip out there, be it GPU or CPU. Nobody is going to buy the 'balanced platform' bullcrap. Wall Street won't."
Posted on Reply
#2
TheMailMan78
Big Member
I'm sorry guys.....This is my fault. Expect Intel to fall too. I just got both.
Posted on Reply
#3
1c3d0g
LMAO...right. The only major innovator in the graphics arena gets downgraded. What a load of bullsh!t. I suppose NVIDIA's GPU computing (with their impressive CUDA toolkit) doesn't count? Doesn't matter, as they earn millions of dollars with their Quadro/Tesla lines anyways, something which even their biggest competitor can't do.
Posted on Reply
#4
TheMailMan78
Big Member
1c3d0g said:
LMAO...right. The only major innovator in the graphics arena gets downgraded. What a load of bullsh!t. I suppose NVIDIA's GPU computing (with their impressive CUDA toolkit) doesn't count? Doesn't matter, as they earn millions of dollars with their Quadro/Tesla lines anyways, something which even their biggest competitor can't do.
Um AMD went 28nm first and has a far lower power draw then Nvidia. Saying NVIDIA is the only innovator in the graphics arena is kinda blind man.
Posted on Reply
#5
Unregistered
btarunr said:
A lesson to take home for AMD is:

"It pays to have the fastest chip out there, be it GPU or CPU. Nobody is going to buy the 'balanced platform' bullcrap. Wall Street won't."
What they really care about is sales and margins. They don't care if you sell shit sandwiches as long as you sell a lot of them and you get a good mark up on them.

I think AMD has been making the right moves this past year. They can't compete with Intel in terms of CPU R&D and therefore can't compete in terms of raw horse power. But fortunately for them, there are a lot of people who don't really care what's running their little laptop or netbook or tablet or whatever. And by 'a lot', I mean the other 6.5 billion people in the world who get a nerdgasm just thinking about being able to have their own computer. Yeah, Intel has some tasty margins, but if you can sell ten times as many chips at 1/10th the price, it doesn't really matter.
Posted on Edit | Reply
#6
Benetanegia
TheMailMan78 said:
Um AMD went 28nm first and has a far lower power draw then Nvidia. Saying NVIDIA is the only innovator in the graphics arena is kinda blind man.
That's not innovation, it's a given going to a lower fab process.

There is some innovation (a lot) in GCN, but being first to 28nm and being first to obtain the derived benefits is not innovation.

Same reason that Nvidia got downgraded. They have not shown any innovation this last year that I can tell, they did evolve a lot of things. Even Kepler is looking like more of the same. And while it will posibly be a very good product, and they have released many other good prodcts, a very good prodct does not innovation make.
Posted on Reply
#7
xenocide
Let's not avoid the fact that Nvidia made a single GPU that was the top performer for over a year before AMD could beat it with a new architecture and dropping 2 fab processes. Just sayin...
Posted on Reply
#8
Jermelescu
389mm^2 vs 520mm^2; 100+$ difference.
It's easy to make a powerhungry monster just to keep the throne, but for smart customer, it doesn't cut the chase.
Posted on Reply
#10
Solaris17
Creator Solaris Utility DVD
TheMailMan78 said:
Um AMD went 28nm first and has a far lower power draw then Nvidia. Saying NVIDIA is the only innovator in the graphics arena is kinda blind man.
this. not to mention everyone can see them sandbagging the next gen Pc gpus. they are too focused on tegra and mobile chips imo. mobile may be big but the big boys already have their cut and the market is saturated. jonny and jill moron dont know the diffirence between broadcom and tegra and they are going to go for whatever is cheaper. if nvidia wants to compete they need to start making bigger contract deals.
Posted on Reply
#11
Ferrum Master
Solaris17 said:
this. not to mention everyone can see them sandbagging the next gen Pc gpus. they are too focused on tegra and mobile chips imo. mobile may be big but the big boys already have their cut and the market is saturated. jonny and jill moron dont know the diffirence between broadcom and tegra and they are going to go for whatever is cheaper. if nvidia wants to compete they need to start making bigger contract deals.
Disagree... mobile market is the next big money cow... they do it right believe me.

We should quit jappin and wait for kepler... and that is it...

Anyway guys... are there any game in the market that you can not run sufficiently enough? What's the hurry.... ??
Posted on Reply
#12
Solaris17
Creator Solaris Utility DVD
Ferrum Master said:
Disagree... mobile market is the next big money cow... they do it right believe me.

We should quit jappin and wait for kepler... and that is it...

Anyway guys... are there any game in the market that you can not run sufficiently enough? What's the hurry.... ??
but i dont belive you. im telling you after working in retail mobile may be a big cash cow but nvidia DOESNT do it right. not to mention their marketing in this segment blows.

Ferrum Master said:
Anyway guys... are there any game in the market that you can not run sufficiently enough? What's the hurry.... ??
The want/need for technological innovation is far more important then games. Does their need to be a reason to expand?
Posted on Reply
#13
Ferrum Master
You have your rights...

But statistically wise... nvidia will dominate the android tab market hand in hand with TI and even HTC claimed that 2012 phones will use many Tegra 3 solutions...

The second thing, this is nvidia's possibility to develop and strengthen ARM evolution as Windows 8 comes in and after a year we should se ARM based quad/octo core ultra books clocked for 3Ghz and it should chop anything more efficiently as old x86 code and nvidia will milk its money. They invest in R/D to catch up TI, Qualcomm and Samsnung. Adreno is in big trouble as an exATI division and has and old dx9 compatible core, they didn't evovle it. PowerVR rocks that is true... Broadcom is nice... but always a second role actor. Now NOKIA lives with WM that uses snapdragons, and there is some sort of trouble as big customer is lost...

Nvidia has no possibilities to rush in APU market, that will kill all low and middle end cards. And high end? Do you think they lack it? Simply there is no need to rush. There isn't much money from enthusiast market... but as soon middle end market will start to diminish because of APU (intel won't be sleeping also), they will be in real trouble.
They should fine tune their chips and not sell some half broken fermi chips again...
Posted on Reply
#14
erocker
Senior Moderator
1c3d0g said:
with their impressive CUDA toolkit
Which is now free.. So that isn't going to make them any money which is what the topic is all about. Also, Nvidia as of right now has nothing new. Nothing, except talk.
Posted on Reply
#15
Completely Bonkers
"Catalyst" this..."catalyst" that..."catalyst"...catalyst...catalyst

Sorry, how many times did they use that word? Some kind of corporate mumbo-jumbo buzz-word bingo?

Those guys need to get out of the office more.

Funny, isnt it... how various phrases and catch-phrases become prevalent in certain companies to such an extent they start using them with the outside world and expect common-folk to tkae them seriously. I bet they even used nonsense phrases like "catalystic analysis in the catalyst industries" at Sterne Agee just to sound posh and clevar.
Posted on Reply
#16
DannibusX
I love the blind fanboyism whenever Nvidia or AMD are mentioned.
Posted on Reply
#17
Moose
DannibusX said:
I love the blind fanboyism whenever Nvidia or AMD are mentioned.
I think everyone should face the facts that they both are in fact quite similar with each having its better and worse points than the other in history X1950XTX, 8800 Ultra, 5970, 480, 6990, 7970...
Posted on Reply
#18
1c3d0g
erocker said:
Which is now free.. So that isn't going to make them any money which is what the topic is all about. Also, Nvidia as of right now has nothing new. Nothing, except talk.
We'll see what you'll have to say once Kepler arrives. :laugh:
Posted on Reply
#19
Ferrum Master
We have to agree on one point tough....

Same as in CPU market... two large market players are simply not enough!! They are toying with us.

And Nvidia hasn't came up with anything new since G80... but we have to agree...prohibition of making own chipsets, and no possibilities to create their own ecosystem. They are desperately just grasping what they can...

And this PR? It is just a fake smile of a crying dragon...
Posted on Reply
#20
eidairaman1
The Exiled Airman
erocker said:
Which is now free.. So that isn't going to make them any money which is what the topic is all about. Also, Nvidia as of right now has nothing new. Nothing, except talk.
NV= POTUS, All talk and no action.


xenocide said:
Let's not avoid the fact that Nvidia made a single GPU that was the top performer for over a year before AMD could beat it with a new architecture and dropping 2 fab processes. Just sayin...
and that was???

Moose said:
I think everyone should face the facts that they both are in fact quite similar with each having its better and worse points than the other in history X1950XTX, 8800 Ultra, 5970, 480, 6990, 7970...
Best ATI:

9500/9700 Pro AIW, X800, X1950, 4870, 5870

Best AMD:

6950/6970, 7950/7970

Best Nvidia:

6800 Ultra, 8800 GTS 640, 8800 GTX 768, 560TI, 580.
Posted on Reply
#21
NC37
Being a 460 owner, I can't discount them as being one of nVidia's best. Sure the 560 is a great improvement on the 460, but look at what was happening at the time period. Confidence in NV delivering something to counter the 5000 series was dropping. The GF100 was cooking itself and requiring it's own power plant to run. Then, in comes the GF104. A complete game changer, opposite of the GF100. Giving AMD some real competition and making the GF100 look like wasted silicon. I lost count of how many threads I saw of people, all over the net, dumping their 480s for 460s.

Had the GF104 failed and followed in the steps of the GF100...the GF114 wouldn't have been the supreme performer it became.

But I'll concede one bit about the 104. It was flat out moronic for NV to limit SLI to just 2 GPUs. AMD had quad crossfire setups running with their 104 competitor. The GF104's strength really became apparent in SLI. NV should have drilled that home but I suspect it would have taken too much attention from the 480.

Best in performance is one thing, but really making an impact on the industry, that is another. I would agree on the rest of that list. But I would add the 6600GT/7600GT and the 3870. Not as performance kings but as some of the best boards which really became hits in their time.

3870 alone I would consider as the GPU which kept ATI in the game till 4000 series. I certainly see it as no coincidence that AMD chose to start the APU series in the 3000 numbers. Without Llano, the pit stain that is BD would have really tarnished the entire year for them.
Posted on Reply
#22
jpierce55
eidairaman1 said:
NV= POTUS, All talk and no action.




and that was???



Best ATI:

9500/9700 Pro AIW, X800, X1950, 4870, 5870

Best AMD:

6950/6970, 7950/7970

Best Nvidia:

6800 Ultra, 8800 GTS 640, 8800 GTX 768, 560TI, 580.
4870 and 5870 need removed and 3870 replacing them. 3870 had a price revolution to it. The 9700 pro I had, and it was imo the most revolutionary g-card of all time. Way beyond anything else that had shown up at that point.
Posted on Reply
#23
dir_d
The 9700 Pro, 4870 and the 5870 are probably the best cards that have been made by ATI.

On topic,
I do agree with the News Article. Every release of a card from AMD since the 4870 there has been some new feature. This has not been the same with NVIDIA.
Posted on Reply
Add your own comment