Nvidia's gaming segment in focus as partners post rising inventory - UBS

Gigabyte Technology

23/05/2022 11:45

** UBS Securities cuts chipmaker Nvidia Corp's  NVDA.O  PT
to $280 from $350 on lower estimates, retains "Buy" rating
    ** We expect another strong set of results and see guidance
biased higher again on back of data center strength and gaming,
says brokerage
    ** Adds gaming segment is unlikely to see enough downturn
yet to risk to numbers that many investors fear
    ** However, UBS says key debate on earnings call is likely
to center around gaming because indicators are clearly not
favorable
    ** Key partners such as Gigabyte Technology Co  2376.TW  and
MSI Global are "posting significant deceleration in revenue and
rising inventory - historically a harbinger of weakness for
NVDA's gaming segment" - UBS
    ** Co set to report Q1 results on Wednesday
    ** Up to last close, stock had fallen ~43% YTD

 (Reporting by Akash Sriram in Bengaluru)
 ((Akash.Sriram@thomsonreuters.com;))