Analysts in Wall Street have been scratching their heads trying to work out what is happening at the GPU maker Nvidia.
For a while many of the pundits had been predicting doom for the outfit and thinking that it would be damaged by the rise of Chipzilla in its traditional GPU market. Until now, Wall Street had been looking at Nvidia’s Tegra and sighing.
However, Hans Mosesman of Raymond James has been telling the world+dog that Nvidia is going to outperform Wall Street’s expectations and make a Q3 revenue of $1.062 billion and earnings per share of 26 cents when it reports results this Thursday.
Talking to Barons, Mosesman thinks that investors are making too much of the prospect that Nvidia’s graphics processing unit (GPU) sales may have been hurt last quarter by competition from Intel and Advanced Micro Devices.
Mosesman thinks that overall losses were modest and overall graphics share moves are not a reliable indicator for how Nvidia works.
While Nvidia was knocked out of out of the “integrated” graphics markets over the past year and the trend for netbooks to use “graphics” skews the numbers, he said.
Tegra is stuffed up by a build-up of inventory of the parts and that could be a problem, Mosesmann admits. But overall it looks like things will not be that bad.