NVidia and Texas Instruments

Today's post continues with our Tech month as we observe two companies, NVidia (NVDA) and Texas Instruments (TXN). NVidia is a company that produces graphics chips and mobile processors. It was established in 1993 and is currently headed by CEO Jen-Hsun Huang. Since electronically public in 1999, we immediately notice that NVidia's stocks are rather unstable and have experienced very little growth in the long term. Share prices peaked in 2007 but are now down to levels previously seen in 2005, about $12-14. In the past month, stocks have remained within this range and have fluctuated between the extremas in just a week. On September 26th, NVidia announced new optimism about cloud gaming - games which involve multi-player online gaming, such as the recently popular League of Legends (LoL). On October 4th, the company reaffirmed a 'buy' status, prompting investment, but was soon downgraded back to a 'neutral' late October 5th. NVidia, despite the common fluctuations, is more stable than before. We advise to invest in the company when stocks reach the lower extrema and promptly sell when it reaches the higher. This is an easy, low-risk strategy to make some money on cheap shares over about a week.
Our other company today is Texas Instruments. This company designs and produces semiconductors and other circuitry, as well as the calculators we all use and love. This company, established in 1951, is currently headed by Richard Templeton. Since our records show, the late 70's, TI has not experienced tremendous growth, except in 1999-2000. Now, in 2012, the stock price is about the same as shares in 2003 up, the stagnant $30 zone. Texas Instruments, unlike many of the other companies we discuss, does not involve significantly in buying other companies and therefore only has market fluctuations from bank ratings and dividend releases. On September 21st, TI announced a quarterly dividend with an increase of 24% over which was previously expected. September 26th saw the downgrade from OP to P with a harsh point drop at the opening of the market. Two weeks later, on October 11th, Credit Suisse downgraded TI to 'neutral,' which surprisingly had a minute impact. Although we can expect growth, we suggest to avoid investing in TI for now; the market could spike again, but it is unlikely considering current conditions. Somehow, we made a profit investing in Texas Instruments, despite the minor euro crisis currently in Europe. This, however, does not change our advice about investing in the company.