New chips power Nvidia’s profits

Article Excerpt

NVIDIA CORP. $14 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 577.9 million; Market cap: $8.1 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.nvidia .com) continues to benefit from strong demand for its new graphic chips, which make computer games run more smoothly. In the quarter ended April 28, 2013, Nvidia’s sales rose 3.2%, to $954.7 million from $924.9 million a year earlier. The higher sales pushed up earnings by 12.5%, to $0.18 a share from $0.16. The company continues to spend a high 34% of its revenue on research, but its sales of chips for mobile devices have slowed while buyers wait for it to launch new models later this year. The company also faces growing competition from larger chipmakers. Nvidia is a hold. hold…