Is NVIDIA Corporation (NVDA) Wasting Your Capital?

For CEOs, cheerleading comes with the territory. But to read NVIDIA Corporation (NASDAQ:NVDA) Co-founder Jen-Hsun Huang's recent blog post announcing plans to build a sophisticated new headquarters is to believe his company has never been better positioned.

"We intend to extend our lead in visual computing and touch every pixel of the billions of displays that now surround us," Huang wrote. Hard to believe his company's stock is off more than 20% over the past year, isn't it?

NVIDIA Corporation (NASDAQ:NVDA)And yet NVIDIA Corporation (NASDAQ:NVDA) is committing what is an as-yet-unknown amount of capital to build its reptilian-looking new HQ at a moment of maximum vulnerability. The new Tegra 4i smartphone chip puts Huang in direct conflict with QUALCOMM, Inc. (NASDAQ:QCOM) , which announced new versions of its high-performance smartphone chips at last month's Consumer Electronics Show.

With more than $3 billion in excess cash on its books, NVIDIA can afford to expand. But should it make the commitment while starting a fight with Qualcomm? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses this question and more in the video below. Please watch, and then leave a comment to let us know what you think.

The article Is NVIDIA Wasting Your Capital? originally appeared on Fool.com and is written by Tim Beyers.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of QUALCOMM. Motley Fool newsletter services have recommended buying shares of NVIDIA.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 30 percentage points in 13 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!