Adam Levine-Weinberg

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

Graphics chipmaker Nvidia (NASDAQ: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 has become harder and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details