Nvidia Is A $12 Stock Worth $18: A Sum Of The Parts Analysis

Graphics chipmaker Nvidia (NVDA), which has not been able to catch a break in recent months, was hit with yet another downgrade on Wednesday. Rick Schafer of Oppenheimer cut his rating to "perform" on general weakness in the PC market. The strange thing, though, is that Schafer's analysis seems far more bullish than his conclusion. He admits that Nvidia has been gaining significant share in the discrete GPU segment with its new "Kepler" chips, and his CY2013 estimates are roughly 15% higher than the analyst consensus for FY14 (the two periods differ by a month, as Nvidia's fiscal year ends in January). As Nvidia's share price has declined over the past four months, it...

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