Raymond James Sees NVIDIA (NVDA) Concerns Overblown (MMI)

Raymond James analyst Hans Moosemann said Wednesday the concerns over NVIDIA Corp. (NASDAQ: NVDA) related to slowing PC sales and delays in a smartphone using its Tegra 2 Chip are overblown.

Rumors are swirling Wednesday that the Motorola Mobility (NYSE: MMI) Droid Bionic smartphone will be delayed at Verizon (NYSE: VZ), which would bring down sales of the Tegra 2 chip.

Mooseman said, "Hence the worry now, it would seem, is that NVIDIA’s entire smartphone business is in jeopardy – for some unspecified reason. NVIDIA has a multitude of Tegra2 wins and these are ramping into production in the April quarter. In addition, we are quite comfortable with our 4.5 million unit Tegra2/smartphone estimate for the quarter, which is roughly 1% of global smartphone shipment."

The analyst added he has heard no issues arising with the Droid Bionic. Moosemann has a Strong Buy Rating on NVIDIA.

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