Apple chose its new Kepler GPU for the MacBook refresh

With the rise of tablets and smartphones in the past few years, the landscape has changed quite a bit when it comes to traditional desktop computer manufacturers, especially those not named Apple Inc.

However, prospects for specific technology manufacturers such as Nvidia Corp. appear bright, in part because Apple has picked the graphics chip maker for its latest MacBook Pro refresh.

The company, a global leader in graphics processing units or GPUs, the microchips that allow computers and other devices to produce images on a screen, looks set to capitalize on strong demand in its Tegra mobile chip technology and new Kepler graphics products for desktop and PC.

Bobby Burleson, analyst with Canaccord Genuity, has upgraded Nvidia to a buy from hold while also raising his price target to US$16 from US$13 on both near and medium-term drivers.

Shares of Nvidia are down 2.7% to US$12.64 on the Nasdaq at midday on Monday.

“While most PC-weighted semis are likely to see number cuts near term based on weak notebook production ahead of the back-to-school period, we expect Nvidia to hit guidance,” Mr. Burleson said. “Nvidia appears positioned to offset near-term PC weakness through Tegra strength and Kepler revenues that were guided by limited 28nm wafer supply not PC demand.”

The new flagship Kepler line of GPUs for desktops and PCs, first launched earlier this year, scored a major coup when Apple chose the GeForce GT 650M to drive the Retina displays on its new MacBook Pros.

The last generation of MacBook Pros had used chips from Nvidia’s rival Advanced Micro Devices Inc. (AMD).

As well, Mr. Burleson sees Nvidia’s guidance on the Kepler line as determined more by supply considerations than on consumer PC demand.

Meanwhile Tegra, a so-called “system-on-a-chip” technology designed specifically for smartphones, tablets and other mobile devices, will benefit from it selection in products such as the HTC One X phone and upcoming Microsoft Corp. Surface tablet.

Mr. Burleson expects 2012 Tegra revenues to hit or even exceed US$500-million, up 39% from US$360-million in 2011. Management has guided US$540-million, although Street expectations have dipped below the US$500-million level completely.

“While Nvidia appears to have significant share on first-generation non-iPad tablets and numerous smartphone design wins, it is unclear which models will be successful,” he said.

Overall, Mr. Burleson forecasts second-quarter revenues of US$1.02-billion and full-year revenues of US$4.225-billion.

Source: Theprovince.com

Tags: Apple, MacBook, MacBook Pro, Nvidia, Nvidia Keplar