NVIDIA (NVDA) Improvements in Gross Margins Sustainable
Nomura Securities maintained a Buy on NVIDIA (NASDAQ: NVDA) with a price target of $16.00 (from $18.00).
NVIDIA reported Q3 results that were in line on revs and better than consensus on EPS, though guidance was light. Gross margin was higher by 52.9 percent, increasing 110 bps, driven by a richer mix of Kepler shipments, noted a Nomura report.
Commenting on the results, analyst Romit Shah said "This forecast is inline with most companies that have guided 5-10 pts below seasonality. While revs are lower gross margin will remain flat, according to guidance, we believe the 28nm transition and weaker competition in GPU could help the company to sustain gross margin at these levels."
For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.
Shares of NVIDIA closed at $12.68 yesterday, with a 52 week range of $11.63-$16.90.
NVIDIA reported Q3 results that were in line on revs and better than consensus on EPS, though guidance was light. Gross margin was higher by 52.9 percent, increasing 110 bps, driven by a richer mix of Kepler shipments, noted a Nomura report.
Commenting on the results, analyst Romit Shah said "This forecast is inline with most companies that have guided 5-10 pts below seasonality. While revs are lower gross margin will remain flat, according to guidance, we believe the 28nm transition and weaker competition in GPU could help the company to sustain gross margin at these levels."
For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.
Shares of NVIDIA closed at $12.68 yesterday, with a 52 week range of $11.63-$16.90.