Will NVIDIA Corporation (NVDA) Continue to Underperform?

So what’s the problem?
If Tegra is the future of NVIDIA, it sure has a lot of growing to do before shareholders take it seriously. The emphasis with NVIDIA continues to be put into the future, and the expectations set by the CEO keep promising that the company will deliver innovative products that the world loves. In the context of Tegra, it boils down to successfully integrating a 4G-LTE modem directly onto the processor. CEO Jen-Hsun Huang reiterated this importance on NVIDIA’s most recent conference call, saying how an integrated approach is absolutely necessary for Tegra to make a splash in smartphones.

Jen-Hsun Huang has shown a long history of setting the bar high. Perhaps this approach hasn’t helped investors, who continue to raise their own expectations beyond a rational level, which ultimately leads to a letdown. It stands to reason that until NVIDIA delivers more than its lofty promises, the company is likely to continue its track record of underperformance.

The article Will NVIDIA Continue to Underperform? originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Google and Intel. The Motley Fool recommends Google, Intel, and NVIDIA. The Motley Fool owns shares of Google, Intel, and Microsoft.

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