Shares of graphics chip producer Nvidia
(NVDA) were higher today after the market research firm Mercury Research said that the company gained considerable market share against arch-rival ATI Technologies
(ATYT) in the third quarter. ATI is in the process of being acquired by Advanced Micro Devices
(AMD). According to a report by
Merrill Lynch analyst Sidney Ho, Mercury’s data showed Nvidia with 29% of the overall graphics market in the quarter, up from 21% in the second quarter. Intel still dominated the market with 38% share, though that was down two percentage points. ATI’s market share declined to 21% from 28%.
Based on the same set of data,
Deutsche Bank analyst Pranay Laharia raised the firm’s price target on Nvidia shares to $30 from $25. The strong Mercury data, the analyst wrote, raises the possibility that Nvidia could report revenue for the fiscal third quarter ending today above its previous guidance of 8%-10% growth. Nonetheless, Deutsche Bank maintains a Hold rating on the stock, asserting that the shares are “priced for perfect execution.â€
Nvidia shares today jumped $2.10, to $34.87.
