Confidence in Nvidia (NASDAQ:NVDA) continues to waver as expectations PC demand will continue to fall and the weak presence the company has in the tablet and smartphone segments.
If the concern over the PC market ends up being true and penetration in the tablet and smartphone market continues to be a challenge, Nvidia is definitely in trouble.
A major hope for the company is its contract wins with smartphones in regard to its Tegra Chip. One negative there is the possibility the release of Motorola's Bionic (MMI) will be delayed; the reason shares fell on Wednesday.
Some analysts see the need for Apple (NASDAQ:AAPL) to redesign its iPhones and ipads with better chips, which would position Nvidia strongly in that area, but that's not here nor there, and it could be a long time before that happens, if it ever does.
As far as the here and now, Nvidia has some major hurdles to overcome before confidence in the company is renewed. Some more wins in the smartphone sector is probably the best bet in the near term.
Nvidia closed Wednesday at $18.45, dropping $0.72, or 3.76 percent.
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