All is Wells with Nvidia.
While it seems that the market has a less-than-favorable outlook for PC sales, a Wells Fargo analyst believes that there will be a boost in PC demand, prompting him to move to a bullish stance on shares of Nvidia. According to the report, “We believe that in the near term a seasonal lift in PC-related chip demand and beyond that a recovery in the consumer PC end market could be positive catalysts for Nvidia’s stock. We are projecting 4-5% sequential sales growth for Nvidia in each of the next two quarters and 10% growth in F13. We think that some of the bigger risks like high investor expectations for Nvidia’s Tegra tablet and smartphone products are now incorporated in Nvidia’s lower stock price.”
The analyst also says that notebook graphics processing unit (GPU) sales have grown over the past two quarters, creating a “good trajectory” for the company and that the company’s share of desktop GPUs is “stable” at 60%. Bullish reports on the consumer PC market have been few and far between of late as many are shifting to tablet offerings for their computing needs. Just last week tech giant Hewlett-Packard (HPQ) announced it is looking to sell its PC division in an effort to focus on software solutions and ditched its TouchPad tablet as it struggled to compete against Apple's (AAPL) iPad and tablets using Google's (GOOG) Android operating system.
Nvidia (NVDA : NASDAQ : US$13.22), Net Change: 1.28, % Change: 10.72%, Volume: 22,727,723
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