Wedbush Securities continues to see some threats to Nvidia Corporation (NASDAQ: NVDA ) even after it issued an extraordinary outlook for the current quarter.
A controlled case for Nvidia Stock
The semiconductor giant expects its revenue to hit about $11 billion in its second fiscal quarter, as Invezz reported here.
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By comparison, analysts were only $7.17 billion. Still, Wedbush’s Matthew Bryson said on CNBC’s “Road Signs of Asia” today:
Cloud players are working on building their own silicon (Google, Amazon, Facebook). Those large customers looking to use their silicon for some internal tasks could move the market.
Analysts currently have a $290 price target on Nvidia stock, which suggests a 25% downside from here.
Additional competition can be a threat
But in the first quarter, Nvidia reported a 38% hit to its gaming division’s year-over-year revenue.
Wedbush Securities’ Matthew Bryson sees competition, especially from companies like Advanced Micro Devices Inc (NASDAQ: AMD ), a potential threat to Nvidia as well.
Another player that has had some traction is AMD, which has, to date, a share in the supercomputing market. Yes [eso] is starting to die, AMD here is another one to watch out for.
Earlier this month, AMD also announced its financial results for the first quarter which came in slightly better than expected. Shares of the California-based company are also trending higher this morning due to strong results from Nvidia.
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