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ATI rises on growing mobile market leadership

Gets Goldman Sachs' thumbs-up

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Securities specialist Goldman Sachs has upgraded ATI stock to its 'outperform' rating on the back of expectations that the company will increase its share of the mobile graphics chip market.

GS told customers that ATI's share of that business will grow from 51 per cent to 59 per cent, and it will maintain that lead for the next two or three quarters, possibly longer.

ATI has ruled the mobile graphics market for some time, despite having long lost the desktop market leadership crown to Nvidia. Nvidia remains its chief challenger in the mobile arena, but it also faces lesser threats such as VIA/S3 and SiS/Xabre, thanks to the latter's recent move to acquire Trident's mobile graphics business.

ATI's stock has been rising over the past five days, from around $10.5 to just under $12 but yesterday opened at $12.75 on the back of the GS report, before closing at $12. Nvidia closed at $19.07, down from a peak of Monday's close of $20.41, on the back of the company's gross-margin warning. ®

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