Comparison of 3 Stocks :: essays papers

Comparison of 3 Stocks All my stock market choices are technology based. nVIDIA is a producer of video card software, AMD a provider of motherboard processors and Electronic Arts a videogame publisher. nVIDIA is an example of a decreasing-cost industry. While a rather early new comer to the video card industry, nVIDIA was showing potential from the start. Major competition to nVIDIA’s foothold in the industry included 3dfx’s voodoo technology and ATI’s Rage. Although 3dfx’s foothold seemed unmovable, the next wave of technology to rise brought about their eventual downfall in the market. 3dfx’s lack of support for their next generation video cards (the voodoo4 & voodoo5) resulted in their being bought out by the nVIDIA Corporation. While nVIDIA released patches to over double the performance of the GeForce2’s technology, 3dfx’s patches for the Voodoo4 and Voodoo5 were riddled with flaws, resulting in performance issues for all of their customers. After the buyout, nVIDIA were now free to utilize the voodoo technology and excel in the market. Now ready to explode even bigger than before, will be the arrival of the GeForce3; boasting results over ten fold that of previous video cards, the GeForce3 will have unparallel performance in the market. This is observed by the slow increase in the percent gain, which will rise dramatically with the release of their new board. AMD, Advanced Micro Devices Inc., was a company entering a seemingly unbreakable market. Processor technology with a high initial cost categorizes it as a decreasing-cost industry. AMD, now the most popular provider of processor technology, came in against the multi-billion dollar corporation of Microsoft. Microsoft’s Pentium processor currently held a foothold in the market; however, AMD’s cheaper K-6 series (although not as powerful processor) provided an economical alternative to Microsoft’s more powerful Pentium II processor. With sales being lost to the more economical K6 series, Microsoft released the Celeron processor, which was widely accepted as a poor alternative to AMD’s K6. However, customer familiarity with the Microsoft brand name, allowed for Microsoft to recoup some of its losses in the field, but with AMD’s following rising, the K7 (Athlon) processor, took a firm hold in the field against the Pentium III. Furthermore, the Athlon Thunderbird (the successor to the K7) has now taken a majority control of the market, by outperforming the Pentium IV in most performance tests.