Nvidia (NASDAQ:NVDA) and Asus recently announced an Android based tablet that will be powered by Nvidia’s quad-core Tegra 3 chip and will sell for $249. Tegra 3 is a significant advancement over Tegra 2 and should help Nvidia gain a greater presence in the tablet market dominated by Apple (NASDAQ:AAPL) as well as in the fast-growing smartphone market dominated by Qualcomm (NASDAQ:QCOM). The tablet market alone can present a huge opportunity for Nvidia, especially as Apple’s dominance withers with launch of more tablets from other manufacturers.
Articles for nVIDIA
Nvidia, Asus Announce Quad-Core Tablet, A Look At Nvidia’s Opportunity In Tablets
Graph ItNEW!Monday, January 23rd, 2012 by Trefis Team
Nvidia’s Ready for Redemption in 2012, Stock Worth $21
Graph ItNEW!Friday, January 13th, 2012 by Trefis Team
Nvidia’s (NASDAQ:NVDA) stock reached promising heights early in 2011 before falling to its current levels. The initial excitement generated by the launch of its dual-core Tegra chips and the announcement of Project Denver died down as Tegra sales turned out to be less than expected and the U.S. economic recovery came under threat from the European debt crisis. Furthermore the launch of APUs (accelerated processor units) by Intel (NASDAQ:INTC) and AMD (NYSE:AMD) further weighed on Nvidia’s stock as investors were worried that this could impact Nvidia’s GPU business.
Nevertheless we maintain our price estimate for Nvidia at $20.91, implying a premium of about 50% to the market price. The GPU business for Nvidia has not suffered, and we believe that stable attach rates and expected growth in IT spending in 2012 will favor Nvidia. Moreover, Nvidia’s expected entry in PC microprocessor market bodes well in terms of long-term value addition. Finally, the continued growth in smartphones and tablets will aid Nvidia’s mobile computing revenues.
Nvidia’s Worth $21, How to Justify Its Current Market Price
Graph ItNEW!Friday, January 6th, 2012 by Trefis Team
Nvidia’s (NASDAQ:NVDA) stock price has dropped significantly after shooting up to a high of more than $25 in early 2011 when the company made some significant announcements including the launch of Tegra 2 and plans to enter CPU market. However, the company’s Tegra chip hasn’t lived up to expectations and there is not much clarity regarding its CPU entry. To add to this, the company’s integrated graphics business is slumping due to the introduction of APUs (CPU & GPU hybrid) by Intel (NASDAQ:INTC) and AMD (NYSE:AMD).
Despite this, our price estimate for Nvidia stands at $20.91, implying a premium of about 50% to the market price.
We take a look at what Nvidia needs to lose in order to justify its current market price.
Nvidia 2011 Review: Key Developments for the Graphics King
Graph ItNEW!Wednesday, January 4th, 2012 by Trefis Team
2011 has been a year of significant developments for Nvidia (NASDAQ:NVDA), accompanied by some wide swings in its stock price. While the company made some significant announcements on the product development side, it also had to face the aftermath of product advancements from Intel (NASDAQ:INTC) and AMD (NYSE:AMD). This past year Nvidia began its serious push into mobile computing and showed ambitions of becoming much more than a graphics chip maker.
Our price estimate for Nvidia stands at $20.91, implying a premium of about 50% to the market price.
See our complete analysis for Nvidia
Nvidia’s Ambitions Expanded Beyond Graphics
Nvidia is primarily known for its GPU technology and its graphics cards are widely used in desktops and notebooks all over the world. However, with the announcement of Project Denver and the launch of the world’s first dual-core mobile application processors Tegra 2 early in 2011, Nvidia made it clear that it has ambitions to expand well beyond graphics.
Project Denver refers to Nvidia’s project under which it will build high-performance ARM architecture based CPU cores that will support regular desktop and notebook PCs as well as servers and super computers (see article Can Project Denver Justify Nvidia’s Stock Run?). These CPUs could be available around 2013.
Nvidia aimed Tegra 2 at the fast growing smartphone and tablet market and recently launched Tegra 3. This launch has accelerated Nvidia’s growth in mobile computing chip revenues. In addition to this, Nvidia bought baseband processor maker Icera, in its quest of further expanding its product portfolio (see article Nvidia Acquires Icera as Baseband Chipset Market Heats Up).
Launch of APUs by Intel and AMD Made Nvidia’s Integrated GPU Business Obsolete
Intel and AMD underwent a very significant transformation in 2011 in their microprocessor business when they began offering Sandy Bridge and Llano APU processors respectively. These processors are a hybrid of a CPU and a GPU, and essentially make the requirement of integrated graphics chips and entry level graphics cards obsolete. As a result, Nvidia’s integrated graphics business began to see rapid declines in 2011, and we expect this business to vanish in a year or two.
Initially there was some concern around whether these new APUs will affect Nvidia’s discrete graphics business as well. However, from the company’s statement in its quarterly earnings release, it was clear that the impact was not significant as discrete GPU attach rates didn’t go down (see article Nvidia Growth Looks Good Despite Sandy Bridge)
While the growth of Android has helped Nvidia in pushing out more of its smartphone chips to compete against Apple (NASDAQ:AAPL), growth in tablets has been a different story. Tablets are cannibalizing PCs and Apple still dominates this segment with its own processors. In 2012, Nvidia will look to gain a greater share in tablet market to offset the potential loss of sales from PC sales slowdown, if it happens.
Understand How a Company’s Products Impact its Stock Price at Trefis
Nvidia Updates: Slips In Mobile Market, Likely To Win Apple’s Contract
Graph ItNEW!Friday, December 9th, 2011 by Trefis Team
Nvidia’s (NASDAQ:NVDA) stock is trading well below the early 2011 levels. The last couple of weeks have shown both positives and negative announcements regarding the company. A research from Strategy Analytics indicates that Nvidia has slipped in the mobile application processor market and lost its earlier 5th position to Broadcom. This market is dominated by established players like Qualcomm (NASDAQ:QCOM) and Texas instruments (NYSE:TXN). Clearly, Nvidia’s Tegra processor hasn’t fared as well as expected during early 2011. Earlier this year, Tegra 2′s introduction was one of the prime reasons why Nvidia’s stock price soared. Nevertheless the quad core Tegra 3 does show promise. The company has been trying to snatch deals with this new product, and latest in the lineup is Acer’s tablet scheduled for 2012.
See our full analysis for Nvidia
On the positive side, it appears that Nvidia’s graphics cards may appear in Apple’s (NASDAQ:AAPL) Macbooks next year. This could help the company gain some share in discrete notebook GPU market against its rival AMD (NYSE:AMD).
You can modify the driver below to see how Nvidia’s price estimate can be impacted by change in discrete notebook GPU market share.
Overall analysts seem to be positive on the stock. Some of the well known research companies such as FBR Capital, Needham & Company, and Oppenheimer have buy rating on the stock.
Our price estimate of $20.91 for Nvidia, implying a premium of almost 40% to the market price, echoes similar sentiments.
Understand How a Company’s Products Impact its Stock Price at Trefis
Nvidia’s Professional GPU Business: Stock Worth $21 Despite AMD Munching on Market Share
Graph ItNEW!Wednesday, November 23rd, 2011 by Trefis Team
Nvidia (NASDAQ:NVDA) demonstrated continued growth in its professional GPU business during its recent earnings announcement. Despite the economic headwinds, the enterprises have continued to spend on servers and other equipment, as evident from Intel (NASDAQ:INTC) and IBM’s (NYSE:IBM) earnings. As the workstations gets refreshed, Nvidia’s professional graphics business gets a lift. Nvidia has held a mammoth share of this market, with AMD getting the remaining of the market share. This is partially the reason why professional GPUs constitute almost 30% to Nvidia’s stock. Going forward, Nvidia faces both a threat, and an opportunity to expand, in this business. While competition is eating some share, opportunities exists for the overall market to get a boost.
Nvidia Earnings Preview: What We’re Watching Thursday
Graph ItNEW!Tuesday, November 8th, 2011 by Trefis Team
Nvidia (NASDA:NVDA) is expected to report its Q3 earnings on Thursday. Nvidia’s stock hinges primarily around broader PC market strength and how GPU attach rates are figuring. These attach rates are highest in Europe at 80%, followed by 60% in China. Given that Western Europe and the U.S. are facing sluggish economy, the question that emerges is will Nvidia’s upcoming Q3 2011 results suffer? We think that Intel (NASDAQ:INTC) and IBM’s (NYSE:IBM) results have shown that the PC market is still not as bad as previously thought and enterprises are willing to upgrade technology. These trends along with recent data releases suggest that Nvidia may post good results.
Our price estimate for Nvidia stands at $19.90, implying a premium of about 35% to the market price.
Nvidia Weekly Notes: VMware Partnership & Asus Tablet
Graph ItNEW!Thursday, October 20th, 2011 by Trefis Team
This past week has been pretty uneventful for Nvidia (NASDAQ:NVDA) though it did announce a strategic partnership to work towards the development of virtual 3D graphics technology VMware (NYSE:VMW). Such technology can enable the high end virtual desktops and applications via remote access. Additionally, the company announced new 3-D glasses and monitors to enhance the 3-D experience of gamers and viewers. Furthermore, last week also revealed that the upcoming Asus tablet will feature Nvidia’s new quad-core Tegra 3 processor. Nvidia is developing its Tegra series to compete effectively against Qualcomm (NASDAQ:QCOM) in the mobile market.
Nvidia’s Stock Taking Cues on News Flow, Intel Earnings on Deck
Graph ItNEW!Tuesday, October 18th, 2011 by Trefis Team
Nvidia (NASDAQ:NVDA) has had an interesting couple of weeks. Earlier this month, reports surfaced that A. Brooke Seawell, one of the Nvidia’s directors and a venture capital partner, plopped down $1.3 million to add to his holdings of Nvidia’s stock. This boosted sentiment for the stock on top of upgrades from brokerages like Wedbush Securities. Then, Qualcomm (NASDAQ:QCOM) came out with its S4 chip for mobile devices, touting its advantages over Nvidia’s clocking technique in its Tegra 3 processor, which raised questions on Nvidia’s outlook.
We don’t see this is as an immediate threat and believe that Nvidia’s Tegra 3 is best for the optimal functioning of the Anroid OS, but it points to the growing battle between Nvidia and Qualcomm. In separate news, Nvidia’s GPUs were selected to build the world’s most powerful supercomputer, demonstrating its power in high end computing.
Overall, we stand positive on the stock as we believe that Nvidia has potential to be successful in smartphones and to make inroads into CPU market where currently Intel (NASDAQ:INTC) reigns supreme with its project Denver. Our price estimate reflects possibility of this success in long term. We note that Intel’s earnings report tomorrow can help give us an update on this market.
See our Intel earnings preview note.
Nvidia Expands Offerings But Wimpy Economy Could Hurt Pricing
Graph ItNEW!Tuesday, October 11th, 2011 by Trefis Team
Nvidia (NASDAQ:NVDA) holds around 85.5% market share of the global professional graphics cards market and has seen its shipments grow in Q2 2011 despite weak economy. Nvidia should however watch out for AMD (NYSE:AMD) which is steadily gaining market share. Intel (NASDAQ:INTC) has also started providing support for professional applications like 3D CAD and basic digital content creation (DCC) through its Xeon processors, something we discussed earlier in Competition Could Weigh on Nvidia’s Professional GPU Prices. If competitive pressures continue and the economy continues to suffer, this could have a negative impact on Nvidia’s professional graphics cards pricing.
Meanwhile, the company is keeping pace with new developments in tablets and mobile computing space. It introduced its Windows 8 Developer program last month for enabling application development and announced that all its major brands of GPUs including Quadro – its professional graphics processor brand – will support Windows 8. It has also improved video processing and input/output capability for its Quadro and Tesla GPUs which should create an uptick in demand for these GPUs.
See our complete analysis for Nvidia’s stock.
nVIDIA : All Articles
- Week of 2012-01-22
- Week of 2012-01-08
- Week of 2012-01-01
- 01/06/12 Nvidia’s Worth $21, How to Justify Its Current Market Price
- 01/04/12 Nvidia 2011 Review: Key Developments for the Graphics King
- Week of 2011-12-04
- Week of 2011-11-20
- Week of 2011-11-06
- Week of 2011-10-16
- 10/20/11 Nvidia Weekly Notes: VMware Partnership & Asus Tablet
- 10/18/11 Nvidia’s Stock Taking Cues on News Flow, Intel Earnings on Deck
- Week of 2011-10-09
- Week of 2011-10-02
- 10/04/11 Nvidia’s Got Cash and Growth to Ride Out Tough Market
- 10/04/11 AMD Shares Dive Due To Weakening Economy And Revised Outlook
- Week of 2011-09-18
- Week of 2011-09-11
- Week of 2011-09-04
- Week of 2011-08-28
- Week of 2011-08-14
- 08/17/11 Nvidia Growth Looks Good Despite Sandy Bridge
- 08/16/11 Nvidia Can Hit $20 if Tegra Takes Off
- Week of 2011-07-31
- Week of 2011-06-19
- 06/24/11 Upside & Downside Scenarios for AMD
- 06/22/11 What’s Driving Nvidia’s Stock Lower?
- Week of 2011-06-12
- 06/14/11 Nvidia’s Tegra 2 Highlighted at Computex
- 06/12/11 Telecom Sector – Key Updates
- Week of 2011-06-05
- 06/10/11 Slow Demand in China for Nvidia
- Week of 2011-05-22
- 05/27/11 The 4 Sources of Value for Nvidia’s Stock
- 05/26/11 Nvidia’s Tegra 2 Chips Gain Traction
- 05/26/11 PC Market Growth Slows in Q1, Risk For Nvidia?
- 05/23/11 Deal with HP Highlights Nvidia’s Dominance and Tesla’s Success
- Week of 2011-05-08
- 05/13/11 Nvidia Paid a Fair Price for Icera
- 05/12/11 Nvidia Acquires Icera as Baseband Chipset Market Heats Up
- Week of 2011-04-24
- Week of 2011-04-10
- 04/13/11 Intel’s Earnings Preview, What We’re Watching
- 04/12/11 AMD Earnings Preview, What We’re Watching
- Week of 2011-04-03
- 04/07/11 AMD Eyes Android Platform & Sees Large Gains in Mobile
- 04/07/11 Nvidia May Need to Beef Up its Tegra 2 Chip
- 04/04/11 10 Tech Stocks with Highest Cash Contributions vs. Stock Value
- Week of 2011-03-27
- 03/30/11 Sizing Up Intel’s Mobile Business After Executive Departs
- 03/30/11 Nvidia Should be Careful on Pricing
- 03/29/11 Can AMD’s Llano Beat Sandy Bridge?
- Week of 2011-03-13
- Week of 2011-02-20
- Week of 2011-01-23
- 01/28/11 Does Atrix 4G Signify Turnaround for Motorola Mobility Fortunes?
- 01/27/11 Can Intel Sustain Growth in Server ASP?
- 01/26/11 What Does an ARM-Compatible Windows OS Mean for Intel?
- 01/24/11 Nvidia Dual Core Tegra 2 Chips to Ride Mobile Revolution with Android
- 01/23/11 Trefis Picks of the Week for Telecom, Media, Technology & Retail
- Week of 2011-01-16
- 01/20/11 The Outlook for Intel Given a Surge in 2011 CapEx
- 01/18/11 Nvidia’s Mobile & Gaming Chips Margins Rising
- Week of 2011-01-09
- 01/13/11 Former AMD CEO Might Have Been Right to Disregard Mobile Device Opportunities
- 01/12/11 Intel Stock Has Plenty of Room to Run Despite Market Share Threat from Nvidia’s Project Denver
- 01/10/11 Can Project Denver Justify Nvidia’s Stock Run?
- Week of 2011-01-02
- Week of 2010-12-19
- Week of 2010-12-12
- 12/17/10 Intel’s Sandy Bridge Processor Could Halt ASP Decline
- 12/14/10 Growing Atom Share Adds Little Value to Intel Stock
- 12/13/10 Nvidia’s Mobile & Gaming Chips Could Lift Outlook
- Week of 2010-12-05
- Week of 2010-11-28
- 12/02/10 Nvidia’s Downside Limited if Desktop PC Sales Drop
- 12/02/10 Can the Kinect Move Microsoft’s Stock?
- 11/30/10 Lowered PC Shipment Forecasts Negative for Microsoft
- Week of 2010-11-21
- 11/24/10 Nvidia’s 3 Stock Drivers to Watch
- Week of 2010-11-14
- Week of 2010-11-07
- Week of 2010-10-31
- 11/04/10 Intense Competition Could Slash Nvidia’s Desktop Chip Pricing
- 11/03/10 Intel Beefs Up On Mobile With Infineon Deal
- Week of 2010-10-10
- Week of 2010-09-26
- Week of 2010-09-05
- Week of 2010-08-22
- Week of 2010-08-15
- 08/19/10 Nvidia Stock Could Slide 4% On Soft PC Demand
- 08/16/10 Lower Expectations for Intel’s Mobile Chipset Biz
- Week of 2010-08-08
- 08/12/10 Potential 2% Intel Upside From Rising Server & Notebook Shipments
- 08/10/10 Small Upside to Nvidia from Higher Share in Notebook PC Graphics
- Week of 2010-08-01
- 08/04/10 Atom Processor Only 2% of Intel’s Stock
- 08/02/10 10% Upside to AMD from Higher Expected Desktop Processor Pricing, Share
- Week of 2010-07-25
- 07/27/10 Small Upside to Intel’s Stock from Higher Atom Market Share
- 07/26/10 No Recovery for Intel’s Server Processor Share Yet
- Week of 2010-06-27
- Week of 2010-06-06
- Week of 2010-05-16
- 05/17/10 Intrinsity Acquisition Could Benefit Apple’s Stock at the Expense of Qualcomm
- 05/17/10 Higher Prices and Margins to Increase Nvidia’s Profitability
- Week of 2010-03-28
- Week of 2010-03-21
- 03/24/10 Upside to Nvidia’s Stock if New Tegra 2 Chip Wins Big in Tablet PC Market
- 03/24/10 Can Snapdragon Stop Qualcomm’s Chipset Pricing Declines?
- Week of 2010-02-07
- Week of 2010-01-03
- Week of 2009-12-06
- Week of 2009-10-04
- Week of 2009-08-09