UPDATE: FBR Capital Markets Downgrades NVIDIA to Market Perform on PC Weakness

FBR Capital Markets reduced its rating on NVIDIA

from Outperform to Market Perform and lowered its price target from $17.50 to $14. FBR Capital Markets commented, "We are downgrading shares of NVDA to Market Perform as we meaningfully reduce exposure to PC chip stocks given ongoing demand weakness, poor reports about Win8 uptake and consumer receptivity, and continuing smartphone/tablet cannibalization impacts. While we do think NVIDIA is the most resilient PC chip stock in the sector today thanks to its "premium" product positioning in PCs … [w]e are moving to the sidelines with NVDA and rate the stock Market Perform given ongoing demand weakness in PCs, smartphone/tablet cannibalization impacts, and a lack of meaningful catalysts until next year." NVIDIA closed at $12.86 on Thursday.