) to overweight from equal-weight.
Analyst Brian Alger says indications of robustness in the PC market provide a more positive macro picture. He views Nvidia as a direct beneficiary of improving market conditions.
He notes, this week, both Intel and Western Digital significantly raised their top-line guidance based on improving market conditions. He says this, coupled with the belief that GeForce 6 products, particularly the 6600, are gaining market share, prompt him to look for Nvidia to have a solid fourth quarter.
Alger raises his 17 cent fourth-quarter earnings per share estimate to 18 cents and sees sees 47 cents fiscal 2005 (ending January). He also raises his 83 cents fiscal 2006 earnings per share estimate to 89 cents.