I've had my eye on NVIDIA (NVDA) long before November of last year, when I named it my stock of the month. Its stock price has fallen 34% since then, and nearly 50% from its highs in July 2007.
Enough is enough.
I bought some more NVDA at around $22.50 on Friday, after it was punished 16% a day earlier for an earnings report that exceeded expectations, but drew concerns for an 8% to 10% increase in operating expenses in the upcoming quarter. A market-leading company such as NVIDIA will reward its long-term investors, by allocating resources such that revenues and profits will increase over the long-term. Really, is the prudent action for a high-growth tech company to be slashing costs? No way.
NVIDIA is focused on growth, by entering new areas such as smartphones - although they aren't a supplier to the iPhone, they will benefit from the greatly increased graphical expectations of those devices, due to the iPhone. Meanwhile, NVDA will continue to dominate PC and gaming platforms as the premier supplier of GPUs.
