Pac Crest has downgraded GPU archrivals AMD (AMD -3%) and Nvidia (NVDA -2%) to Underperform. The firm cites checks that point to weak motherboard production and a major Q/Q drop in high-end graphics card shipments.
Digitimes recently reported global graphics card shipments (not the same as end-user demand) were set to fall 30%-40% Q/Q in Q2 due to high inventories, and that AMD/Nvidia were responding by cutting shipments rather than prices.
Separately, AMD has unveiled the FirePro W8100, a workstation card that support 8GB of GDDR5 RAM and 2.1 teraflops of double precision compute performance. A flagship card (the FirePro W9100) supporting 2.62 teraflops of double precision compute performance was launched in April.
BofA/Merrill downgraded Nvidia last week.