BusinessWeek notes NVIDIA is the worst performer in the Nasdaq 100 as the company's shares have plunged 44 percent since the beginning of the year. The company hasn't seen a lot of luck in recent years, as it got plagued by a string of bad news, including issues with defective GPUs, lawsuits, the decline of its chipset business, lackluster graphics cards, increased competition from AMD and a bad bet in mobile sector.
The drop in the company's stock hasn't dented the confidence of Nvidia CEO Jen-Hsun Huang, who says his graphics chips are on the rise. In April the Taiwan-born founder of the company told analysts that the "vast majority of the world" recognizes Nvidia as a "world leader in visual computing." Such statements don't always help him in the eyes of investors, says Hans Mosesmann, an analyst at Raymond James.
Nvidia's main business is designing high-end computer chips that process the movie-like images in computer games. This year the Santa Clara (Calif.) company introduced Fermi, which promised game designers more processing power. "It's the most forward-looking architecture out there by far," says Dan Vivoli, Nvidia's senior vice-president for marketing. Forward-looking, but not on time: The $200, consumer-oriented version of the chip debuted only last week, six months later than originally planned.