NVIDIA (NVDA): Lehman Cuts Estimates on Price Pressure

Lehman had much praise for AMD (AMD) today, but still rates NVIDIA (NVDA) higher, despite competitive pressures and limited upside.

NVDA — New Products; New Outlook:

  • Yesterday, GPU leader NVIDIA launched GTX 200 discrete GPU & new Tesla product which may help NVDA maintain its edge at high end. However, launch of AMD’s well reviewed RV770 (Jun23/24) & also FireStream 9250 aimed at HPC market (available in Aug) may increase comp dynamics possibly pressuring NVDA ASPs.
  • Given possibility of ASP pressure due to RV770 and potential inventory work down we lower revenue ests for C3Q08 & C4Q08 slightly.

Lehman maintains OVERWEIGHT on NVDA, target price $25. Certainly doesn’t sound like an “overweight” to us.

See Also:
Advanced Micro Devices (AMD) Showing Promise
NVIDIA (NVDA): Limited Near-Term Upside (NVDA, AMD)
NVIDIA (NVDA) Long-Term Promise Outweighs Near-Term Share Loss and Inventory Concerns

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