Canaccord Genuity CES Preview: Focus Shifting Away From Tablets

Canaccord Genuity CES Preview: Focus Shifting Away From Tablets

Analyst, Bobby Burleson, said, "We expect CES to offer a short-term boost to shares of Atmel (Nasdaq: ATML)(Hold, PT $13), Intel (Nasdaq: INTC)(Hold, PT $24), and NVIDIA (Nasdaq: NVDA)(Hold, PT $15), driven respectively by ubiquity of touch, debuts of quad-core tablets and smartphones, and the introduction of dozens of ultrabooks. Following CES-related enthusiasm, we believe PC demand is likely to hold back shares of Intel and NVIDIA, while Atmel could trade sideways as investors wait for another number cut on weak industrial and comms demand. Longer term, we like Atmel for MCU share gains and proliferation of touch into low cost smartphones and non- tablet/smartphone markets. A win in a next gen Kindle Fire could provide a medium-term catalyst."

"Expecting less tablet excitement - more focus on ultrabooks and smartphones - While we expect numerous Android tablets to be on display during next week's annual Consumer Electronics Show (CES) in Las Vegas, a lack of strong sell-through for devices ex-iPad (Nasdaq: AAPL) or Kindle Fire (Nasdaq: AMZN) should dampen tablet enthusiasm, in our view, despite the recent release of Google's Ice Cream Sandwich OS (Nasdaq: GOOG). Ultrabooks are likely to garner more attention, as these slim, SSD-based devices offer PC OEMs their best near-term to the challenge from tablets. Several models are currently shipping, and we expect dozens more ultrabooks to debut at the show. Quad-core smartphones should also be on display, and NVIDIA could get a boost from related announcements Monday evening ahead of the show."

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