Market Overview

What The Latest Steam Gaming Data Means For AMD, Nvidia

Share:
What The Latest Steam Gaming Data Means For AMD, Nvidia
Related AMD
The Chips Are Down: Weak Forecasts Hurt Semiconductor Stocks
Friday Follies: Brexit, Semiconductor, And Tariffs All Take Center Stage
NVDA, ESEA, AMAT and AMD among premarket losers (Seeking Alpha)
Related NVDA
The Chips Are Down: Weak Forecasts Hurt Semiconductor Stocks
Mid-Day Market Update: Natural Grocers Climbs Following Strong Q4 Results; Chi-Med Shares Plummet
NVIDIA , Gogo, PG&E and Sphere 3D among midday movers (Seeking Alpha)

Bank of America Merrill Lynch identified seven takeaways from May Steam PC gaming data for the gaming GPU market.

  • Analyst Vivek Arya expects the next-generation NVIDIA Corporation (NASDAQ: NVDA) Volta/Turing game cards are still on track to be released by the end of 2018.
  • Consensus analyst estimates for quarter-over-quarter Nvidia gaming sales growth of 9 percent in Q3 and 1 percent in Q4 are too low, the analyst said.
  • New games announced for the Nintendo (OTC: NTDOY) Switch at E3, including “Fortnite,” “Super Smash Bros” and “Pokemon,” could drive upside to Nvidia’s 2019 unit growth numbers, Arya said.
  • BofA sees no real near-term competitive threat from Advanced Micro Devices, Inc. (NASDAQ: AMD) in the high-end PC gaming market and said the next-generation Navi GPU will not be coming until 2019 at the earliest.
  • Arya estimates only about 26 percent of gamers are using at least a GTX 1060-level card, suggesting 74 percent of gamers will need to upgrade to a better card to effectively play many of the newest games.
  • BofA found that 75 percent of Steam gamers use Nvidia cards, but AMD’s card share increased by 0.3 percent in May to 15 percent, with the remaining users relying on integrated graphics from Intel Corporation (NASDAQ: INTC).
  • AMD’s share of the CPU market has doubled from 8 percent in January to 16.3 percent in May thanks to Ryzen, Arya said.

Arya has the following targets and ratings for the stocks mentioned:

  • AMD: Buy rating, $17 target.
  • Nvidia: Buy rating, $340 target.
  • Intel: Buy rating, $70 target.

Related Links:

BofA Highlights The Most 'Underowned' Semi Stocks

BofA's 5 Takeaways From Advanced Micro Devices' Computex Announcements 

Latest Ratings for AMD

DateFirmActionFromTo
Oct 2018BairdMaintainsNeutralNeutral
Oct 2018BMO CapitalMaintainsMarket PerformMarket Perform
Oct 2018BarclaysUpgradesUnderweightEqual-Weight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Analyst Color Price Target Reiteration Crowdsourcing Top Stories Analyst Ratings Tech General Best of Benzinga

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Deutsche Bank Holds Spotify, But Names 4 Ways It Could Turn Bullish On The Streaming Service

10 Biggest Price Target Changes For Thursday