Graphics microchip maker Nvidia seems to be weathering the personal computer industry slowdown better than some other semiconductor firms, according to analysts.
After the Santa Clara company posted its latest quarterly earnings, reporting a $178 million profit on sales of just over $1 billion, Wall Street purred approvingly.
Even though Nvidia’s chips are used in PCs, which aren’t selling well these days, they’re also being plugged into smartphones and tablets. And those two fast-growing markets have allowed Nvidia to fare relatively well.
In a note to his clients, Raymond James analyst Hans Mosesmann termed Nvidia’s quarterly financial report “quite impressive,” adding that “we suspect Nvidia will continue to outpace the market and other PC players over the next few quarters.”
FBR Capital Markets analyst Craig Berger added in his own note, “we think Nvidia is the most attractive PC chip stock in the sector today given mobile growth opportunities.”