UPDATE: Jefferies Lowers Target to $16 on NVIDIA

Jefferies maintains its Hold rating on NVIDIA (NASDAQ: NVDA) and lowers its price target from $16 to $15 a share on below-guidance pre-announcement from the company.

Jefferies comments, "Nvidia pre-announced CQ4 revenues of $950m, 11% below prior guidance of $1,066m. While we believe HDD shortages had a negative impact, we are concerned two other fundamentals might be at play: 1) secular decline in GPU attach rates, and 2) share loss in Smartphone/Tablet application processor. We could become more constructive with visibility into ARM-based PC ramp for Win8."

NVDA closed at $14.94 a share on Tuesday.