Nvidia hit by Morgan Stanley downgrade

|By:, SA News Editor

Morgan Stanley's Joseph Moore has downgraded Nvidia (NVDA -2%) to Underweight, citing an "uncertain" earnings growth outlook and concerns about Intel royalties.

The downgrade comes two weeks after Nvidia rallied sharply in the wake of its FQ3 report. Though the chipmaker posted in-line results and below-consensus FQ4 guidance, it also upped its dividend and added $1B to its buyback plan.

Nvidia has been collecting $66M/quarter in royalties from Intel, thanks to a $1.5B, 6-year, cross-licensing deal reached in early 2011.