Morgan Stanley published a preview on Nvidia (NASDAQ: NVDA) Monday morning.
The firm mentioned that Nvidia did not participate in the bitcoin/litecoin boom; therefore it did not suffer from the massive shortfall in demand as mining rigs have transitioned to custom semiconductor solutions.
AMD (NASDAQ: AMD) may continue to report weakening year-over-year comps, according to the Morgan Stanley analysts as a result of falling demand from crypto-currency miners.
Morgan Stanley mentioned that Nvidia's graphics growth may not have been as sustainable in the prior quarter:
“We like the company's longer term fundamental prospects in GPU, data centers, and autos, but in addition to our concern that gaming growth last quarter may be unsustainable, we think valuation is high.”
In the coming quarter, Morgan Stanley analysts mention that they're offering a bit of a conservative forecast, and that the bar really isn't set that high:
“Having said all of that, we note that our numbers and consensus budget for slightly less than seasonal growth in July and October (we project 5% growth in GPUs in both qtrs.), so the bar isn't that high.”
Morgan Stanley reiterates its Underweight rating, and is on the sidelines due to concerns over whether or not gaming GPU demand is sustainable.
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