Wedbush Morgan Cuts Nvidia to 'Hold'
Wedbush Morgan downgraded Nvidia (NVDA ) to hold from buy.
Analyst David Wu tells S&P MarketScope that the downgrade is due to quick price appreciation since he upgraded the stock two weeks ago. Also, he sees limited growth in the company's core discrete graphics business, given Intel's (INTC ) stepped-up effort and commitment to the integrated graphics market, which Intel signaled at its Developer Forum last week.
Wu says Nvidia's first-quarter outlook remains murky given product transition issues and declining Xbox sales. On the plus side, he notes the company will launch new members of its GeForce FX family in March, which will address various segments of the graphics market.
Wu maintained a 72 cents EPS estimate for fiscal year 2004 (ending January).