Analysts are starting to voice concerns about Nvidia’s performance in the coming quarter, as the outfit sees slower demand for GPUs and more competition in the ARM market.
Shares dipped 1.43 percent on Monday, but they are still trading around the $15 mark, slightly higher than last week. Nvidia peaked in January and February, with shares trading at over $25. However, a year ago, in August, Nvidia was trading at under $10, so it seems the rollercoaster drive is coming to an end.
UBS analyst Urche Orji lowered his estimated for the company’s stock from $20 to $16.5 on Monday. He cited slow graphics sales reported by AMD last week and stronger competition in the ARM market. Orji notes that Google has already chosen Texas Instruments chips for the Ice Cream Sandwich reference design, while both TI and Qualcomm have announced chips that could outperform Nvidia’s Kal-El in most applications.
More here.
Analysts pull the brakes