Wedbush Met With Nvidia's CFO; Here's What Happened

In a report published Friday, Wedbush analyst Betsy Van Hees maintained an Outperform rating on

, with a price target of $24, after meeting with the company's CFO Colette Kress. "NVDA sees continued strength of the gaming GPU market noting 6 consecutive quarters of 25+% growth and excitement for NVDA's products continues to grow," analyst Betsy Van Hees said. The company recently released GeForce 980 Ti, which was very well received. Nvidia is "comfortable" to wait for the 2nd gen high bandwidth memory in 2016, before it launches its own products with Pascal. Nvidia's ITC hearing against Samsung and

for patent infringement is scheduled to being on June 22. Based on "prior timing and cadence of hearings such as these," Nvidia expects the decision to come in early October. "NVDA also clarified its litigation expense guidance of $70MM to $90MM in FY16 would support all 4 cases with Samsung/Qualcomm," Hees added. In the report Wedbush noted, "The higher Y/Y inventories in FQ1 (80 DOI vs. 67 DOI) were due to new products including GeForce 980 Ti for 4K gaming, multiple version of products necessary to support the automotive market, and new SHIELD Android TV solution and not due to any extra inventory from PC OEMs or other existing gaming GPUs. NVDA noted that it has no concerns with the channel inventory levels which currently look very normal." Hees expects the company's commitment to shareholder returns to continue to provide support to the stock and believes that the shares will continue to "trade in a tight range until there is better visibility on strength of 2H CY15 and outcome of the ITC hearing."