Credit Suisse First Boston keeps its hold rating on Nvidia (NVDA ). Analyst Tim Mahon says the maker of graphics processing units guided its earnings per share lower, which includes the effects of an inventory write-off charge of an undisclosed amount.
He thinks the reason for a 28% sequential decline in revenues was the impact of lower sales of Intel's 845G chipset as well as a shift to low-end products as well as market share loss. Nvidia's GeForce4 product works with the Intel's 845G Intel's chipset for the Pentium 4 processor.
Mahon also says the reason for Nvidia missing his estimate was its aggressive pricing tactics, softer notebook demand than initially anticipated, and weak demand in "white box" PCs, or computers that target the small business PC market and arrive in a white box -- an ultra-competitive market.
Mahon says he doesn't see a near-term catalyst for the stock, and thus he cut his $1.32 fiscal 2003 (Jan.) earnings per share estimate to $1.02, and trimmed the $1.02 fiscal 2004 to $0.86.