What Could Soon Knock Down The Price Of Several Tech Stocks…

I received an interesting comment
about Nvidia this week, from a large sell-side institution: “It’s
been a gutsy but, thus far, ill-timed call (Semiconductor Analyst) is sticking
with the view that ATYT will recover from its missteps and catapult it into a
leading position over NVDA. A backend-loaded quarter was well-telegraphed, with
weakness due mostly to the mix shift from discrete to integrated graphics and
ASP pressure in retail as ATYT prepares to clear the channel. Note that for 3Q,
(Semiconductor Analyst) looking for $590mm and 0.36 versus the Street’s $594m
and 0.33 and suggest downside risk as the X-Box (8% of revenues) dwindles to
zero.”

This seems to say more about ATI than Nvidia. Regardless,
with PC margins getting squeezed, it would be impressive for either of these
companies to increase their margins. Back-end loaded quarters, of which Dell has
recently had several, should be a warning sign to everyone in this segment.
Somebody will “miss” sales targets and several dominoes will fall knocking down
related companies’ stock prices. (Margins are already being sacrificed to make
top-line or market share numbers…) Just my opinion. I could be wrong.