Friday, February 10th 2012
Once Company of The Year by Forbes, NVIDIA is now having a hard time convincing 111-year old investment firm Sterne Agee that it is as much of a company to look out for. The firm downgraded NVIDIA from its coveted "Catalyst Driven Idea List," claiming that NVIDIA lacks the kind of innovation looking into the foreseeable future, to remain in that list. Says Sterne Agee:
"We had put NVDA on our Catalyst Driven Idea list on January 3 ahead of anticipated catalysts at CES and Mobile World Congress (MWC). While there were some catalysts at CES with the quad-core Tegra 3 integrating Touch on its Ninja 5th core, CES also saw a Win8 Tablet prototype running an NVDA Tegra. While we believe there could be more catalysts with MWC February 27, we believe NVDA shares are fairly valued here. MWC catalysts could include Tegra 3 handsets with Icera baseband and some 7-10 tablets running Android Ice Cream Sandwich.
Overall PCs Continue to be Weak & New Tablet Ramps are Just Getting Announced - We believe near term PCs are seasonally weaker, and while HDD supply is improving, we believe PC demand continues to be weak. Also for NVDA, Tegra 2 into tablets is ramping down, and while the company could have new Tegra 3 design wins into tablets, we believe the production ramp on any new tablets in the April Q will not be as material.NVDA has been dull, since. This development adds to the pressure on the company to come up with a killer new product portfolio, and increased innovation. The full report can be accessed here.Source: VR-Zone, Image Courtesy Forbes
Discrete GPU Competition -- With AMD ramping 28-nm Radeon HD 7970 which delivers 5-30% better graphics performance than competitor GPUs on the market, paired with integrated APU Llano and INTC's Ivy Bridge-Haswell, we continue to believe the core discrete GPU market could have some structural challenges."