NVDA May Continue to Lose Market Share in Graphics Card Market
Analysts at FTN Equity Capital Markets maintain their “sell” rating on NVIDIA Corporation (NASDAQ: NVDA). The target price is set to $9.
According to FTN Equity Capital Markets, NVDA is likely to lose more market share in the graphics card market, specifically in the high-end category, in the near future. FTN Equity Capital Markets believes that NVDA would face margin pressure in the forthcoming quarters due to the shortage of high-margin and high-end GPUs. FTN Equity Capital Markets expects the shortage to continue for another two to three quarters.
FTN Equity Capital Markets believes that margin pressure will continue until NVIDIA Corporation can get a more efficient design for its enthusiast GPUs. Since NVDA is now focusing on high-volume segment of the video card market, the company may sell its old products at discounted prices leading to further margin pressure, FTN Equity Capital Markets adds.
