AMD's acquisition of graphics chip manufacturer ATI Technologies (which we highlighted in last week's DTP commentary) continued to have ramifications for other the stocks in the index, as well as the entire industry. In the week following the announcement, it seems the market is viewing ATI's rival, Nvidia Corporation as a direct beneficiary of the proposed merger. With the stock up approximately 13% in the week, investors are betting that the AMD/ATI deal will create a tighter relationship between Intel and Nvidia, and should eventually enable Nvidia to grow its presence on Intel's platform beyond the 1% share it currently has today. In total, the company stands to gain approximately $400M in annual sales by replacing ATI's position in the Intel ecosystem, and the appreciation in the stock during the past week indicates that some investors are optimistic about Nvidia's chances.
| Disruptive Technology Portfolio | ||||
| Stock Price 8/2/06 |
% Change Weekly |
% Change Year To Date |
||
| AAPL | Apple Computer | $68.16 | 6.7% | -5.2% |
| ATYT | ATI Technologies | $20.20 | 1.9% | 18.9% |
| BIDU | Baidu.com, Inc. | $68.70 | -25.3% | 9.2% |
| BBBB | Blackboard | $28.26 | 0.5% | -2.5% |
| BRCM | Broadcom | $23.34 | 6.0% | -25.7% |
| CNQR | Concur Technologies | $12.71 | -3.4% | -1.4% |
| CRM | salesforce.com | $25.33 | 3.5% | -21.0% |
| CTSH | Cognizant Technology | $67.23 | 7.1% | 33.7% |
| DRIV | Digital River | $44.03 | 6.2% | 48.0% |
| EBAY | Ebay | $22.99 | -5.9% | -46.8% |
| GOOG | Google Inc. | $367.23 | -4.7% | -11.5% |
| INFY | Infosys | $41.64 | 3.3% | -48.5% |
| KNXA | Kenexa | $25.56 | 9.1% | 21.1% |
| MFE | McAfee | $21.39 | -10.7% | -21.2% |
| MRVL | Marvell | $18.46 | 6.5% | -67.1% |
| NOVL | Novell | $6.28 | -2.9% | -28.9% |
| NSR | Neustar | $30.18 | 0.1% | -1.0% |
| NVDA | Nvidia Corp. | $22.88 | 13.0% | 25.2% |
| RHAT | Red Hat | $23.37 | -1.7% | -14.3% |
| RIMM | Research in Motion | $64.36 | -1.5% | -2.5% |
| RNOW | RightNow Tech | $11.87 | -1.8% | -35.7% |
| TLEO | Taleo | $8.60 | 8.7% | -35.2% |
| TIBX | TIBCO, Inc. | $7.81 | 1.7% | 4.6% |
| TXN | Texas Instruments | $29.44 | -0.1% | -8.2% |
| ULTI | Ultimate Software | $20.95 | 0.7% | 9.9% |
| VRSN | Verisign | $17.72 | -4.2% | -19.1% |
| WEBX | WebEx Communications | $33.27 | 2.5% | 53.8% |
| WIND | Wind River | $8.42 | 3.4% | -43.0% |
| WIT | Wipro | $12.60 | 2.5% | 5.4% |
| YHOO | Yahoo! Inc. | $26.63 | -1.7% | -32.0% |
| DTP Index Value | 195.67 | -2.1% | -11.4% | |
| SPX | S&P 500 | 1,278.55 | 0.8% | 2.4% |
© 2006 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing [email protected] or calling 1-877-291-2683.
Disruptive Technology Portfolio