Mobile competition slows Nvidia

Article Excerpt

NVIDIA CORP. $16 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 578.6 million; Market cap: $9.3 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nvidia .com) earned $133.3 million in the three months ended July 28, 2013, down 21.8% from $170.4 million a year earlier. Earnings per share fell 14.8%, to $0.23 from $0.27, on fewer shares outstanding. Revenue declined 6.4%, to $977.2 million from $1.04 billion. Demand for entry-level computers has weakened, but sales of high-end desktops and servers remains strong. That pushed up sales of Nvidia’s graphic chips (88% of total revenue) by 7.5%. However, sales of its Tegra chips for mobile devices (5%) dropped 70.7%, mainly due to competition from larger chipmakers. Nvidia is also phasing out the current Tegra before it launches a new version later this year. Licensing revenues (7%) were flat. Nvidia is a hold. hold…