Week Update: Technology Sector News
Below we present a summary of key updates that might be of interest to investors interested in technology stocks. Many of these stocks have dropped due to downward market movement driven by macro factors like unemployment and the Federal Reserve's statement regarding slower economic recovery. Our analysis here features AT&T (NYSE:T), Verizon (NYSE:VZ), Comcast ( CMCSA ), Nvidia (NASDAQ:NVDA) and AMD ( AMD ).
AT&T will need to work with state and local governments to pay nearly $1 billion as part of a class-action settlement resulting from allegations against the company. These allegations claim that AT&T inappropriately levied taxes against customers on mobile data fee.
Verizon is looking for FCC's permission to exchange part of its 700 MHz spectrum licenses with U.S. Cellular's 1900 MHz PCS licenses. This could help Verizon in improving capacity and service.
NBCUniversal, which has been acquired by Comcast, will continue to be the International Olympics Committee's U.S. media partner for the next four games.
note: We are in process of updating our Comcast model to reflect the NBCUniversal acquisition
Nvidia's stock has gone down by 6% this week. While this is naturally influenced by overall market declines due to weak economic indicators and slower than expected recovery as stated by the Federal Reserve, Nvidia seems to be experiencing weak demand in China for its GPUs. The reason is success of Intel's Sandy Bridge processors and this could continue to put pressure on Nvidia's stock.
Nvidia also introduced its upcoming quad-core mobile processor called Kal-El at the recently concluded Computex trade show in Taiwan. The chip will be compatible with tablet devices and could be a significant leap over current processors. Although this is not likely to be launched until next year.
AMD has been working towards getting more channel partners to adopt its Opteron 6000 series platform.