
NVDA Preview: Could See a Little Upside

By Ben Thomas
About this article:
Nvidia is slated to report earnings after the close on Thursday with a conference call scheduled for 5:00 p.m. EST.
Current projections call for the company to post EPS of 10 cents on revenue of $837 million. I wouldn't be surprised to see a little upside to these estimates as Apple's MacBook (an Nvidia customer) sales were pretty strong during the quarter, and the overall inventory levels remain in balance.
In the graphics segment, look for ASPs around $22 to $25 with 30 million units sold. Listen for commentary around market share -- is the company losing some to Advanced Micro Devices ? -- and how the industry growth rates look in the face of a pending PC upgrade cycle. We'll also need to hear about the overall profitability levels. Look for gross margins in the 37% range or higher.
The overall movement to lower-end...

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