Short Covering Suggests These Are 4 Technology Stocks To Watch
Stock markets continued to hold their gains for 2013. For the year-to-date, the S&P 500 (SPX) is up 6.81%, while the technology sector is under-performing. As measured by the PowerShares QQQ (QQQ), the ETF is up 4.02% so far. The rising bullishness brings higher risks for a sell-off, but bears are taking profits on their bets for a number of tech stocks: (More Tech Lists: Watch These 9 Blackberry Suppliers)
Data Source: Bloomberg
Notable Companies to Watch:
1. NVIDIA Corporation (NVDA): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap at $7.95B, most recent closing price at $12.73.
Short-selling volume for NVIDIA (NVDA) declined by 24.5% between January 15 and January 31, 2013. The company reported quarterly earnings that beat estimate, but guidance was once again light. In its Q4 report, Tegra sales rose +90% compared to a year-ago. Graphics chip sales rose 7%, but NVIDIA was cautious on its mobile growth. The company will need an integrated baseband and app processor to compete more effectively against chip-giant Qualcomm (QCOM). The company earned $0.28 per share in Q4 on revenue of $1.11B.
NVIDIA expects revenue to be $940M, below estimates of $1.07B in Q1.