We received information that Wedbush Morgan analyst house raised the NVDA stock estimate by as high as 20%, which is quite unusual in the current gloomy state of economy. According to two analysts in the report, Senior Analyst Mr. Patrick Wang and assistant Mr. Michael Lucarelli, they are now reporting about significant uptake in demand for Nvidia products.
According to the report, the firm decided to raise the outlook "following a round of channel checks, we are optimistic regarding the recent bump in GPU and chipset orders as well as the ongoing depletion of channel inventory." The firm now predicts that 1Q revenue will rise to just a little below $500 million or 2.9% growth; while business seriously recovered following doom and gloom period in December/January. According to the information, NVIDIA has internal inventory of around half a billion USD, which provides the reason why the company went with aggressive rebranding of G92b chips… if you have 500M of unsold 55nm chips, you will do good ole’ "old lamps for new, new for old" trick.
Thus, Nvidia is getting rid of its 55nm inventory through GeForce 9800GT, GTS250 and a market deceiving trick named GeForce GTX 260M and 280M – while these parts are architecturally the same as two-year old GeForce 8800GTS 512MB. Report also contains details about upcoming 40nm GPU line-up. All in all, it looks like Nvidia had a very impressive first quarter of the year, after the market crashed at the end of 2008. But, ATI will push them hard with their own 40nm parts such as Radeon 4750 [already previewed at Guru3D, Ed. ] and the introduction of Radeon 4890 on April 9, according to Fudzilla.