Opinion on  NVIDIA Corp (NVDA)     Sector: Technology  >  Industry: Semiconductors
Nvidia in 2007

NVDA has taken a big price hit this year 10% in only 4 days.  Theres

been no key developments other than when American Technology Research

analyst Doug Freedman cut his rating on the stock to "Neutral" from

"Buy".  I expect NVDA to great this year, they are already  6 months

ahead of ATi, who's development cycle will be held up by the AMD

aquisition.

If you look at the consensus target price (18 Analysts) the mean target

price is  37.22 with a median price of 40, combined with 6.2% insider

ownership and 82% institutional ownership....I'm not the only person

who thinks NVDA will have a solid future.

in response to stock guru: Nvidia's Competitors have a mean P/E of 32, where NVDA has a P/E of 35 right now, however the expected PE in 12 months for NVDA will be 24.5x where their competitors have a mean P/E of 26.5x*

NVDA has a EBIT of 18.0% (Compared to 9% mean of its competitors), The net income margin (EBIT/Total Revenue) is 13.5% (compared to 1.5% of its competitors)*

So although currently it is trading at a premium compared to competitors, it currently has much better trading multiples, and if estimates are correct, will trade at discount against its competitors in the future

The beta of 4 also makes me nervous, however i'm not planning on holding this for the long term. I would recommend selling when AMD announces a competing (DirectX 10) product, however i dont think this well happen until at least Q2

(*source: Capital IQ 1/17/07)

Acceleware Corp. engages in the development, manufacture, and marketing of software/hardware accelerators. Its accelerators are used to reduce engineering design simulation and data processing run times of various computing applications, such as cell-phone design, seismic data processing, nano-materials research, protein folding and drug discovery, reservoir simulation, and lithography mask design. The company primarily serves various industries, including electromagnetics, energy, biomedical, fluid dynamics, molecular chemistry, industrial, and military. Acceleware is based in Calgary, Canada.



Acceleware Trades on the Canadian stock exchange with a market cap of $13.0m (CAD), making NVDA



I think this is investment puts nvidia one step closer to making more of their own CPUs