Nvidia: Best In Class Among Semiconductors In 2016
Alex Cho • 16 Comments
Alex Cho • 16 Comments
Nvidia Is A $12 Stock Worth $18: A Sum Of The Parts Analysis
Adam Levine-Weinberg • 65 Comments
Adam Levine-Weinberg • 65 Comments
Tue, Jul. 26, 9:39 AM
- Nvidia (NVDA +1.5%) labels its Quadro P6000 the "world's fastest GPU", based on the company's Pascal graphics structure.
- Simulations, animations, virtual reality and complex modeling cited as use cases.
- 2x faster than previous iteration.
- VRWorks' 360, software capable of creating 360 video out of multiple 4K videos, also released.
- The upgrades and new software are aimed at artists, animators and designers operating with large datasets, enabling these professionals to work quicker and with increased flexibility.
- AMD (AMD +3.4%) similarly released its new Radeon Pro WX lineup with creative professionals in mind.
- These graphics cards are based on the company's Polaris architecture.
- Real-time game engine demands, virtual reality demands and increasing image processing demands were noted by AMD's Raja Koduri (Senior Vice President and Chief Architect, Radeon Technologies Group) as catalysts in the space.
- Koduri also highlights the ability to display 8K video processing at a 90 Hz frequency.
- He considers a balance between open source software and improved hardware important to the division's AR and VR strategies.
- Both Nvidia's and AMD's new workstation chips are believed to be released soon.
- These professional workstation chip upgrades come amid recent surges in the semiconductor arena with both companies opening up in early session trading.
Mon, Jul. 25, 3:30 PM
- Advanced Micro Devices (AMD +16.8%) [current volume 99.07M vs. 29.38M average] posted an impressive quarter last week and its share price continues to climb.
- Solitron Devices (OTCQB:SODI +11.7%) [current volume 98,631 vs. 2,656 average] and Micron Technology [current volume 43.08M vs. 31.60M average] are rising as well with Micron adopting a shareholder rights plan amid takeover speculation and Solitron appointing an investor long at odds with its board as CEO last Friday.
- With Qualcomm (QCOM -0.9%) surging last week, Nvidia (NVDA +1.9%) shares up 23%+ since late June, AMD's positive quarter and apparent turnaround, and with the exception of Intel (INTC -0.1%) and some others, the semiconductor sector has found itself on a tear.
Mon, Jul. 18, 12:41 PM
- Like it or not the huge success of Pokémon Go is likely to unleash a huge pop in mobile games designed around augmented reality.
- There is already an online petition asking for a similar Harry Potter Go game to be designed and many more mainstream characters are sure to start showing up in games linked to the cameras on smartphones and tablets.
- Companies stocked with an arsenal of appealing characters that could be brought into augmented reality games include Disney (NYSE:DIS), Time Warner (NYSE:TWX), Mattel (NASDAQ:MAT), and Hasbro (NASDAQ:HAS). Movie studios (LGF, SNE, VIA, VIAB) could also benefit as AR games tied around plot lines from old movies are developed (The Godfather, Star Wars, Blade Runner, Hunger Games, etc.) and used to promote new features.
- Many retailers and restaurant chains have already been active in trying to latch on to the Pokémon Go buzz (see What's McDonald's doing inside the Pokémon code?), while GameStop (NYSE:GME) thinks it has an angle on the collectibles and accessories side. As the retail sector works out the science of in-game marketing opportunities, even more opportunities could arise.
- Technology firms with a stake in augmented reality include Google (GOOGL, GOOG) , Himax (NASDAQ:HIMX), Nvidia (NASDAQ:NVDA), and Intel (NASDAQ:INTC).
- Nintendo ADRs (OTCPK:NTDOY) are up 8.6% today and have doubled in value during the week following Pokémon Go's introduction.
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Fri, Jul. 15, 5:59 AM
- via Wells Fargo:
- "We think that renewed competition from AMD (NASDAQ:AMD) in graphics and Intel (NASDAQ:INTC) in coprocessors could create headwinds to growth and possibly limit Nvidia’s (NASDAQ:NVDA) ability to beat expectations in the near term."
- "We expect Nvidia will be able to continue to grow its coprocessor business in the future but we wonder if rising competition from Intel in this segment creates some headwind to momentum in the space. We think the Knights Landing family might help Intel regain some share in the HPC coprocessor market, though Nvidia has also introduced a new coprocessor family this year, its Tesla P100."
- Firm says NVDA is now trading "significantly above" its valuation range of $30-36.
- See infographic here
Mon, Jun. 13, 12:16 PM
- Upbeat on the potential of the company's data center/server GPU business following a talk with CEO Jen-Hsun Huang, Nomura's Romit Shah has upgraded Nvidia (NVDA +2.3%) to Buy, and upped his target by $20 to $55.
- Shah: "Mr. Huang was very enthusiastic about the prospects for the Datacenter business, as Hyperscale companies quickly adopt throughput computing in an effort to accelerate workload performance. Datacenter revenues grew 63% yoy last quarter due to broad adoption for Nvidia’s M40 product, a GPU accelerator. We believe that NVDA has an 80% share in the accelerator market, which makes up less than 1% of total datacenter spending."
- He adds engagement for Nvidia-powered autopilot solutions for cars (now above 80) will boost automotive revenue later this year. Shah's target is equal to a 4.5x EV/sales ratio.
- Nvidia soared last month after strong earnings/guidance that were fueled by surging Tesla server graphics card sales, as well as rising Tegra processor sales within the automotive infotainment market. Facebook, Microsoft, Alibaba, and other web/cloud giants are believed to be Tesla clients.
Thu, Jun. 9, 8:56 AM
- Global PC shipments this year are expected to fall 7.3%, according to IDC, roughly 200 basis points worse than the group's previous forecast. This cut comes after Q1 shipments fell 12.5% Y/Y vs. the anticipated 11.3% decline.
- "The latest update reflects continuing pressure on PC shipments, but does not significantly change the factors driving the market," says IDC's Loren Loverde, adding that with an unprecedented four straight quarters of double-digit volume declines, the bar has been lowered for some improvement going forward.
- Tickers of interest: INTC, MSFT, OTCPK:LNVGY, NVDA, AMD, MU, STX, WDC
Mon, May 23, 12:39 PM
- "Politics is now a topic in every client discussion," say David Kostin and team, and the nature of today's electorate nearly assures a close race, even though prediction markets currently assign a high probability of a Clinton victory.
- When uncertainty rises, consumer staples (NYSEARCA:XLP) typically outperforms, while tech (NYSEARCA:XLK) lags.
- Getting down to names, with protectionism and tax policy two key areas of debate, buy those stocks with high U.S. sales and high effective tax rates, and avoid those with high foreign sales and low tax rates.
- High U.S. sales and high tax rates (buy): Cardinal Health (NYSE:CAH), Fidelity National (NYSE:FIS), Discover (NYSE:DFS), AmerisourceBergen (NYSE:ABC), Schwab (NYSE:SCHW), ADP (NASDAQ:ADP), Chipotle (NYSE:CMG), Reynolds America (NYSE:RAI), Express Scripts (NASDAQ:ESRX), Alliance Data (NYSE:ADS), Fiserv (NASDAQ:FISV), Paychex (NASDAQ:PAYX), Whole Foods (NASDAQ:WFM), Akamai (NASDAQ:AKAM), Intuit (NASDAQ:INTU), Southwest Airlines (NYSE:LUV).
- High foreign sales and low tax rates (avoid): Abbott Labs (NYSE:ABT), Agilent (NYSE:A), Mondelez (NASDAQ:MDLZ), XL Group (NYSE:XL), Waters (NYSE:WAT), Priceline (NASDAQ:PCLN), Transocean (NYSE:RIG), PerkinElmer (NYSE:PKI), Nvidia (NASDAQ:NVDA), Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC).
Fri, May 13, 12:45 PM
Fri, May 13, 10:21 AM
- Nvidia (NASDAQ:NVDA) has rocketed 11.5% after last night's solid earnings beat and strong revenue guidance for Q2.
- Analysts have responded with price target increases and a couple of upgrades. Roth Capital upgraded to Buy from Neutral, and boosted its price target to $40, from $34.50 (the stock is trading at $39.66 as of now).
- The Datacenter segment grew 63% (and 47% Q/Q), "largely driven by deep learning adoption by cloud operators (IBM, Facebook, Microsoft, Amazon, Alibaba, Baidu, and Twitter), indicating to us that NVDA has found its next big growth vector,” analyst Brian Alger says of the "massive potential" there.
- Brean reiterated a Hold but raised its fair value range to $35-$40. “The Company continues to execute well and has growth drivers/levers in Tegra and GPUs and more importantly, is expecting a resumption of growth from its Gaming business driven by its Pascal-based GeForce products in Jul-16Q,” says analyst Mike Burton.
- Meanwhile, Jefferies Group raised its price target to $45 from $42; Wedbush raised its target to $42 from $38; RBC Capital increased its target to $40 from $36.
- Now read Nvidia Drops Another Pascal Bomb On AMD »
Fri, May 13, 9:17 AM
Thu, May 12, 5:37 PM
Thu, May 12, 4:41 PM
- Nvidia (NASDAQ:NVDA) has gained 4.9% after hours following Q1's earnings beat featuring a view for Q2 above analyst consensus as well.
- Revenues grew by double digits with a $100M gain in Gaming, its biggest platform, and revenue grew in all platforms except one.
- For Q2, the company's forecasting $1.32B-$1.38B, significantly higher than consensus for $1.28B. It's expecting non-GAAP gross margin of 58%, non-GAAP opex of about $445M and capex of $30M-$40M.
- Revenue by platform: Gaming, $687M (up 17%); Professional Visualization, $189M (up 4%); Datacenter, $143M (up 63%); Automotive, $113M (up 47%); OEM and IP, $173M (down 21%). GPU business gained 15% and Tegra Processors grew 10%, to $160M (up 2% sequentially thanks to growth in Tegra Automotive).
- Conference call to come at 5 p.m. ET.
- Press Release
Thu, May 12, 4:22 PM
Thu, May 12, 1:49 PM
- AMD presents a risk to Nvidia (NVDA -2.1%) as it's made "substantial progress" and may have taken graphic chip share, says Wells Fargo's David Wong.
- "We believe that market share gains in graphics chips have been a contributor to Nvidia’s top line performance and stock price value over the last two years" -- a period where Nvidia stock has nearly doubled.
- But AMD's last quarterly report showed double-digit sequential growth in desktop discrete graphics units and gains in professional graphics, and guided for 15% sequential growth in the out quarter, while Nvidia's guidance midpoint implies a 10% sequential decline.
- A seasonal decline isn't a negative for Nvidia, Wong says, but "we think that Nvidia’s expectations and AMD’s graphics growth momentum suggest that AMD is beginning to regain graphics revenue share" and that Nvidia earnings this afternoon and Mercury Research's upcoming chip market update should confirm that.
- Wong has an Outperform rating on AMD (AMD -2.2%) and a price target of $4.00-$4.50 -- implying 12-26% upside. He's rating Nvidia Market Perform.
- Now read Nvidia And The Need For Speed »
Wed, May 11, 5:35 PM
NVIDIA Corp. is a visual computing company, connecting people through computer graphics. It is engaged in creating graphics chips, which is used in personal computers. The company operates through two segments: Graphics Processing Unit (GPU) and Tegra Processor. The GPU segment includes sales of... More
Industry: Semiconductor - Specialized
Country: United States
Other News & PR