Tuesday, September 30, 2003
Merrill Lynch & Co. said ATI is gaining market share from Nvidia in the selling of desktop graphics processors.
A loss of share in the high-performance market could hurt Nvidia significantly, since the segment has been an important source of profits, analyst Joseph Osha wrote in a research.
Osha cut his rating on Nvidia's stock to ``sell'' from ``neutral,'' and cut his earnings-per-share estimates to 42 cents from 48 cents for fiscal 2004, and to 53 cents from 75 cents for 2005, well below consensus estimates of 51 cents and 67 cents, respectively.
Osha reported that Nvidia still had 64 percent of the desktop graphics processor market in the second quarter, flat with the first quarter. However, sources from Taiwanese graphics-card manufacturers said that ATI is beginning to gain market share from Nvidia.
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