Nexus 5 And 7.7 Preview: A Pair Of Tech Stocks To Watch

LG (LPL) and Google (GOOG) are reportedly partnering to build a 5-inch Nexus smartphone. Specifications appeal to the Android user-base, and the phone will have:

·       5-inch HD screen

·       NVIDIA (NVDA) Tegra 4 chip

·       2GB RAM

·       13 MP rear camera, 3MP front

·       8GB – 16 GB storage

The 8GB could be $299.

A successor to the Nexus 7 tablet is also rumored. Sporting a 7.7-inch screen and a 1920×1200 resolution at 294ppi, the tablet would be powered by a Tegra 4 chip. If the rumors are true, consumers should expect the devices to debut in May 2013. The devices will run “Key Lime Pie,” the next operating system version succeeding “Jelly Bean.”

Analysis: 2 Companies To Watch

1. LG Display Co., Ltd. (LPL): Engages in the manufacture and supply of thin film transistor liquid crystal displays (TFT-LCD) to original equipment manufacturers and multinational corporations primarily in Asia, the United States, and Europe. Market cap at $9.79B, most recent closing price at $13.68.

LG Display stands to benefit if Google chooses the company to build the Nexus 5 and 7.7-inch tablet. Asus is the current supplier for Nexus 7. Since November, shares traded down steadily, falling 20% from a 52-week high. LG is also a supplier for  Apple’s (AAPL)  iPhone. For the interim, LG’s share price will be impacted by quarterly results from Apple on January 23 after the market closes. Longer-term, a confirmation that LG will supply for Google will justify a higher valuation.

Tool provided by Kapitall. Login to access free research tools, share practice portfolios, and more. 

2. 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 $7.57B, most recent closing price at $12.11.

NVIDIA relies on the success of Android to increase mobile sales. The graphics chip maker was hurt by weak Motorola Xoom sales, which used the Tegra 2 processor, in 2011. Current Android-based tablets made by Google and Lenovo are powered by NVIDIA’s Tegra 3.

NVIDIA Tegra 4 competes with Qualcomm’s (QCOM) Snapdragon 800. The Tegra 4 is powerful: it supports HDR photography well, runs on 4 CPU cores, and has 72 GeForce GPU cores. Yet, Qualcomm is still the preferred chip for SoC, because the Snapdragon chip have connectivity modules.

 

The average 1-year return for these 2 stocks is -6%. 

 

Written by Kapitall's Chris Lau .

 

 


 

null

More from Stocks

Watch: Here's What Wall Street Is Tracking Monday as Trump Sends Stocks Lower

Watch: Here's What Wall Street Is Tracking Monday as Trump Sends Stocks Lower

Harley-Davidson to Shift Some U.S. Production in Wake of Tariffs

Harley-Davidson to Shift Some U.S. Production in Wake of Tariffs

What Tesla Needs to Do to Fight Off High-End Automakers Going Electric

What Tesla Needs to Do to Fight Off High-End Automakers Going Electric

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

This Will Be the Ultimate Buy (or Sell) Signal for Stocks