NVIDIA (NVDA) Long-Term Promise Outweighs Near-Term Share Loss and Inventory Concerns

NVIDIA Corp. (NVDA), a visual computing technologies provider, has a big fan in AmTech:

We believe the long-term fundamentals, gross margin expansion, and Montevina hiccup outweigh notebook share loss and inventory concerns at NVDA and remain positive on the stock….

We also believe the Montevina integrated graphics hiccup is a positive for NVDA’s Discrete GPU solution and could increase “double attach” opportunities once they are designed-in.

Long-term fundamentals remain strong as investors appear to be overly discounting the impact of Intel’s GPU roadmap and AMD’s Fusion roadmap, despite 2H08 and 2009 likely continuing to be a healthy environment for NVDA. We believe gross margin expansion is likely after near-term inventory and G92 yield issues are resolved

AmTech reiterates BUY, target price $27.

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