NVIDIA Corporation (NASDAQ:NVDA) shared its fourth quarter earnings for 2014 and the company made investors happy by posting an all time high 22.30 dollars. The company surged by 7 percent. Its association with Intel has brought the company many accolades and twice-fold investors. NVIDIA Corporation (NASDAQ:NVDA) has been making money ever since it shifted to gaming, software and high performance computing. But after sometime the deal with Intel will come to an end as it was for a limited period of time and it is possible that it will hurt NVIDIA Corporation (NASDAQ:NVDA)’s earnings in the future.
NVIDIA Corporation (NASDAQ:NVDA) and Intel have been in a partnership for quite some time with lots of turbulence in between. NVIDIA Corporation (NASDAQ:NVDA) has provided high quality graphics card to the computers of Intel. Because of the cross-licensing agreement with Intel, NVIDIA Corporation (NASDAQ:NVDA) has earned 66 million in revenue every other quarter. By 2017 this 66 million will start to recede because the license with Intel will expire and it is unlikely to get renewed considering the fact that both these companies have had strained relationships and wouldn’t want to get together for another business venture.
In such a case, NVIDIA Corporation (NASDAQ:NVDA) will have to associate itself with another partner because that way it will keep posting healthy revenue. Otherwise, the revenue it made through Intel would vanish and the company will suffer major losses. Losses will result in investors losing their faith in the stock and ultimately shorting it.
The best thing for NVIDIA Corporation (NASDAQ:NVDA) will be to strike a deal with Apple Inc. (NASDAQ:AAPL)’s Mac. Association with Mac will be astounding for the computing world because NVIDIA Corporation (NASDAQ:NVDA) has created a good reputation and mix that with Mac’s powerhouse and you get a computer which is beyond any competition on the market. But striking such a deal would take years for NVIDIA Corporation (NASDAQ:NVDA). So till that the company must look for an alternative route to keep its finances steady, otherwise there will be a lot of bumps in the road and a loss is imminent.
NVIDIA Corporation (NASDAQ:NVDA) by now have impressed many investors out there in the market and most of them will be onboard with the company but that doesn’t mean it should get complacent because complacency will cost them future prospects. NVIDIA Corporation (NASDAQ:NVDA) has shaped itself up intelligently by its long association with Intel; it has built a strong reputation for itself. Now the company should be wary of the coming times which don’t seem so bright since the association with Intel is coming to an end.
Having said that, NVIDIA Corporation (NASDAQ:NVDA) has had a nice run on the market and if it gets it strategies right, it will continue to post good revenues. A couple of healthy quarters from hereon will put NVIDIA Corporation (NASDAQ:NVDA) in a formidable position, a position which will ensure its bright future.
