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http://blogs.barrons.com/techtrader...s-to-exit-chipset-mkt/?mod=googlenews_barrons
Nvidia (NVDA) shares are down sharply today following a highly negative report on the company from Pacific Crests Michael McConnell.
For starters, he asserts that Nvidia plans to exit the chipset market in 2009. Our checks confirm that Nvidia has decided to exit the chipset market next year, he wrote. McConnell notes that chipsets are expected to account for 21% of the companys revenue in the January 2009 fiscal year; he estimates today come down dramatically to reflect that expected move.
Meanwhile, McConnell also says that due to fallout from defective notebook GPUs, the companys share of the notebook market will likely drop below 50% once Intels refreshed Montevina platform ships in the second quarter of 2009.
McConnell asserts that a negative pre-announcement on results for the fiscal third quarter ended October appears imminent.
McConnell cut his rating on the stock to Sector Perform from Outperform; he says there is downside in the graphics chip companys shares to $7. McConnell cut his EPS estimate for FY 09 to 70 cents, from 78 cents; for FY 2010 he drops to 46 cents, from 72 cents.
NVDA today is down $1.25, or 13.8%, to $7.78.
Mega sad face. Can't be true?
Nvidia (NVDA) shares are down sharply today following a highly negative report on the company from Pacific Crests Michael McConnell.
For starters, he asserts that Nvidia plans to exit the chipset market in 2009. Our checks confirm that Nvidia has decided to exit the chipset market next year, he wrote. McConnell notes that chipsets are expected to account for 21% of the companys revenue in the January 2009 fiscal year; he estimates today come down dramatically to reflect that expected move.
Meanwhile, McConnell also says that due to fallout from defective notebook GPUs, the companys share of the notebook market will likely drop below 50% once Intels refreshed Montevina platform ships in the second quarter of 2009.
McConnell asserts that a negative pre-announcement on results for the fiscal third quarter ended October appears imminent.
McConnell cut his rating on the stock to Sector Perform from Outperform; he says there is downside in the graphics chip companys shares to $7. McConnell cut his EPS estimate for FY 09 to 70 cents, from 78 cents; for FY 2010 he drops to 46 cents, from 72 cents.
NVDA today is down $1.25, or 13.8%, to $7.78.
Mega sad face. Can't be true?
