Buy, Sell, or Hold: NVIDIA

By Evan Niu, CFA – Aug 13, 2013 at 11:00PM

NASDAQ: NVDA

Nvidia

Market Cap

$2,066B

Today's Change

(3.71%) $29.55

Current Price

$826.32

Price as of April 25, 2024, 4:00 p.m. ET

Graphics specialist NVIDIA is keeping pace with the broader market this year, and the company had no major mobile wins in early 2013. Fortunately, the core graphics business is still solid despite a weak PC market.

The first half of 2013 has been relatively slow for NVIDIA (NVDA 3.71%), with shares mostly keeping pace with the broader market. This is expected, as the company made the conscious decision to delay the Tegra 4 time frame in order to focus on Tegra 4i. The graphics business continues to hold up admirably in the face of a slow PC market, as NVIDIA's target gamer market remains resilient.

NVIDIA is now entering the licensing business with its graphics architecture, which could translate into new opportunities in mobile. The company could now potentially earn wins at the top two smartphone vendors, Apple (AAPL 0.52%) and Samsung, which aren't interested in using Tegra processors directly.

In the following video, Fool contributor Evan Niu, CFA, and Eric Bleeker, CFA, discuss NVIDIA at current prices.

Eric Bleeker, CFA, owns shares of NVIDIA. Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple and NVIDIA. The Motley Fool owns shares of Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.