Sterne Agee Neutral On Nvidia

Sterne Agee is lowering its earnings estimates on NVIDIA Corporation NVDA. It still rates shares at Neutral. In a note to clients, Sterne Agee writes, "We are lowering our July quarter estimates from prior $1.02B/$0.27 to $975M/$0.26. While NVDA has some near-term tailwinds with Atrix, Samsung Galaxy Z handsets ramping in Europe, and Acer (2353.TW, 50, NR) tablets ramping, we believe core PC is seeing a slowdown with Desktops (DT) weaker in May-June, down 15%+ q/q; also Notebook (NB) ramps of the integrated Sandybridge, Llano and DT Lynx A8 and A6 with improved DX11 graphics could be headwinds for NVDA. Even on current generation Honeycomb, we believe Tegra is seeing some competition with Sony (SNE, $26.57, NR) S1 and S2 tablets, Playbook all using OMAP and Samsung (05930.KS, KRW883000, NR) ramping its Exynos dual-core for Galaxy in Austin." Shares of NVDA are up 8 cents to $16.23 in early Tuesday trading.