Sometimes the business world can be about as bizarre as Alice in Wonderland. Graphics chipmaker ATi
announces a massive net loss of $104 million, and yet its stock price rose from 13.27 to 14.20 per share. The reason?
"First quarter of fiscal 2006 revenues are expected to increase by approximately 15% relative to the fourth quarter of
fiscal 2005," according to ATi in a press release from yesterday. Which makes perfect sense, as ATi does have new
graphics cards arriving soon, and they do provide the GPUs for both the Microsoft Xbox 360 and Nintendo Revolution
(Sony opted for ATi's rival NVIDIA to make the GPU for PlayStation 3).
Do you think this is a sign of investors having more trust in the games industry? Do you think it is wise or
foolish for the stockholders to expect revenue increases next fiscal year?
[via IGN]
