http://www.forbes.com/markets/2005/05/06/0...rketscan09.html
Credit Suisse First Boston maintained a "neutral" rating on Nvidia (nasdaq: NVDA - news - people ) and $28 target price ahead of the graphics chip firm's first-quarter earnings report next week. "Strength in Xbox and chipsets will offset flattish revenues in the core business," said CSFB. "Chipset strength and potential slight gross margin upside to our 34.8% is being driven by the company's new logic chip for the Intel (nasdaq: INTC - news - people ) platform, a product priced at a 50% to 100% premium to Intel's chipset at high margins due in part to its exclusive ability to allow two graphics cards in a high-end gaming PC." The research firm forecasts earnings-per-share of 28 cents on sales of $582 million for Nvidia. CSFB said weakness at ATI Technologies (nasdaq: ATYT - news - people ) creates a "better near-term opportunity" for Nvidia shares. "We believe ATI is pricing in a downside near-term scenario caused by the back-end material constraints and seasonal PC weakness," it said. "We would be getting aggressive at current levels ahead of the strong second-half higher margin consumer ramp and potential milestones including next Thursday's Xbox 2 announcement, Computex desktop graphics announcements, two new handset OEM ramps, and the DirecTV (nyse: DTV - news - people ) build cycle." However, the research firm said Nvidia's second-half performance may "lag somewhat" as the "widely known Xbox wind-down" begins. Nvidia is set to report first-quarter earnings on May 12 after the close. The Xbox gaming system is made by Microsoft (nasdaq: MSFT - news - people ).
Credit Suisse First Boston maintained a "neutral" rating on Nvidia (nasdaq: NVDA - news - people ) and $28 target price ahead of the graphics chip firm's first-quarter earnings report next week. "Strength in Xbox and chipsets will offset flattish revenues in the core business," said CSFB. "Chipset strength and potential slight gross margin upside to our 34.8% is being driven by the company's new logic chip for the Intel (nasdaq: INTC - news - people ) platform, a product priced at a 50% to 100% premium to Intel's chipset at high margins due in part to its exclusive ability to allow two graphics cards in a high-end gaming PC." The research firm forecasts earnings-per-share of 28 cents on sales of $582 million for Nvidia. CSFB said weakness at ATI Technologies (nasdaq: ATYT - news - people ) creates a "better near-term opportunity" for Nvidia shares. "We believe ATI is pricing in a downside near-term scenario caused by the back-end material constraints and seasonal PC weakness," it said. "We would be getting aggressive at current levels ahead of the strong second-half higher margin consumer ramp and potential milestones including next Thursday's Xbox 2 announcement, Computex desktop graphics announcements, two new handset OEM ramps, and the DirecTV (nyse: DTV - news - people ) build cycle." However, the research firm said Nvidia's second-half performance may "lag somewhat" as the "widely known Xbox wind-down" begins. Nvidia is set to report first-quarter earnings on May 12 after the close. The Xbox gaming system is made by Microsoft (nasdaq: MSFT - news - people ).
