Nvidia: Why I Refuse to Believe the Worst Is Over

There have been a lot of road-kills in the graphics business [Chips & Technologies, S3, Cirrus Logic (CRUS) , Tseng Labs come to mind], which is always cyclical, and "owned" by a player or two. For now, nVidia (NVDA) is one of the big two, and will continue to be - till the next major breakthrough in graphics processing creates a new winner [or a new old winner].

I had an opportunity to listen to nVidia's mea culpa conference call - after the earnings announcement that fell short, but wasn't as bad as expected. While this is fine and dandy, it just seems too "perfect" to me, and I refuse to believe that the long-term effects of this admitted snafu will last only one quarter. Why am I being pessimistic?