Shares of Nvidia (NASDAQ:NVDA) are under pressure today on the warning from ThinkEquity analyst Krishna Shankar that the company will probably be hurt by declining PC consumer demand.
Although Shankar acknowledges strong growth for Nvidia in the smartphone and tablets market, it apparently won't be enough to offset the projected decline in PC sales.
With smartphones and tablets outside of Apple (NASDAQ:AAPL), he also pointed to the heated competition from rivals like Marvell (NASDAQ:MRVL), Texas Instruments (NYSE:TXN), Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:BRCM).
He added that “slowing consumer PC market growth may be worsened by supply bottlenecks due to the Japan earthquake.”
Concerning ARM-based PC and server chips, revenue from those segments is probably still a couple of years away, Shankar concluded.
Hew lowered his EPS estimate for fiscal year 2012 from $1.18 to $1.10, and for full year 2012 from $1.35 to $1.20.
Shankar maintains a "Hold" rating on Nvidia, which was trading at $18.45, dropping $0.72, or 3.76 percent. He slashed his price target on Nvidia from $24 to $18.
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