Needham & Company Reiterates an 'Underperform' on NVIDIA (NVDA); Guidance Was Better Than Feared, But Where’s the Ramp in Tegra?
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Price: $225.16 -0.06%
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates an 'Underperform' on NVIDIA (NASDAQ: NVDA).
Needham analyst says, "NVDA posted solid July results and provided October guidance that was better than feared. Given the deteriorating macroeconomic climate and tough semiconductor tape, investors were expecting a guide-down. While we were impressed with the market share gains in notebook GPUs (900bps Q/Q), we believe they are unsustainable as Sanybridge and Llano are fully adopted in the mainstream notebook/desktop segments. Moreover, the lack of any meaningful sequential growth in Tegra is a major concern and reflects lackluster sell-through demand. With the competitive landscape intensifying in tablets in 2012, uncertainty around graphic attach rates and rising OPEX to accommodate Icera, we forecast Non-GAAP earnings to contract in CY12. While the shares might rise this morning following a short squeeze, we see continued risk for the shares."
"Our FY12 and FY13 estimates move to $4.1BN/$1.21 (vs. $3.85BN/$0.90) and $4.30BN/$1.14 (vs $4.18BN/$1.00), respectively."
For more ratings news on NVIDIA click here and for the rating history of NVIDIA click here.
Shares of NVIDIA closed at $13.41 yesterday.
Needham analyst says, "NVDA posted solid July results and provided October guidance that was better than feared. Given the deteriorating macroeconomic climate and tough semiconductor tape, investors were expecting a guide-down. While we were impressed with the market share gains in notebook GPUs (900bps Q/Q), we believe they are unsustainable as Sanybridge and Llano are fully adopted in the mainstream notebook/desktop segments. Moreover, the lack of any meaningful sequential growth in Tegra is a major concern and reflects lackluster sell-through demand. With the competitive landscape intensifying in tablets in 2012, uncertainty around graphic attach rates and rising OPEX to accommodate Icera, we forecast Non-GAAP earnings to contract in CY12. While the shares might rise this morning following a short squeeze, we see continued risk for the shares."
"Our FY12 and FY13 estimates move to $4.1BN/$1.21 (vs. $3.85BN/$0.90) and $4.30BN/$1.14 (vs $4.18BN/$1.00), respectively."
For more ratings news on NVIDIA click here and for the rating history of NVIDIA click here.
Shares of NVIDIA closed at $13.41 yesterday.
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