Pacific Crest Upgrades NVIDIA Ahead Of Earnings

Pacific Crest Securities upgraded NVIDIA Corporation (NASDAQ: NVDA) from Underweight to Sector Perform in an earnings preview issued Sunday.

Analyst Michael McConnell noted that with "62 percent unit share in the desktop discrete graphics processor market, NVIDIA has sought to diversify its product offerings into new markets such as workstation, high-performance computing, game consoles, tablets and smartphones."

McConnell believed “that NVIDIA’s success in these new markets will prove vital to maintaining company growth and profitability over the long term, as the industry shift from discrete graphics to integrated solutions begins to accelerate.”

As for competition, NVIDIA may “enjoy a near monopoly at the high end of the desktop discrete market, as supply chain conversations indicate that AMD’s next-generation RADEON R9 380X GPU has slipped to a 2Q15 launch.”

The analyst note estimated that Fiscal Q3 Revenue will be $1,200.4 million with EPS of $0.27. The company will report on Thursday, November 6.

NVIDIA recently traded at $19.86, up 1.66 percent.