Nvidia and Flextronics are two companies involved in subcontract work in the production of the Xbox. A chip maker, Nvidia is the smaller company. It anticipates 10% of its revenues from the X-box contract. Its stock has risen 90% since January 2001. Hello! Know anybody else in the Santa Clara doing that well? (For an update on the exodus from the Silicon Valley, largely of twenty-somethings, read this )
Flextronics is more diversified and will be hurt less if X-box flops.It could even, the article concludes, make up for its losses in a "quarter or two;" hence it's a more conservative investment choice.
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