Nintendo (NTDOY) pushed out a big software update for its Wii U users. The update, which is estimated to be around 5GB, takes hours to install and fixes many glitches and software bugs. Despite the inconvenience for its users, sales across the United States for the Wii U were strong. This follows through with strong pre-sale figures from GameStop (GME). 1.2 million Wii U software titles were pre-ordered.
Although a number of applications for the Nintendo Wii U are not ready, Hulu Plus was made available on November 20, followed by Amazon Instant Video on November 21. Upcoming but unreleased apps such as the TVii app will be available next month.
In addition to watching Nintendo shares, investors might want to consider the part suppliers for the console maker. Power the Wii U is IBM’s (IBM) 45-nanometer central processor. There is 2GB of DDR3 RAM. Though not confirmed, it is thought that the graphics chip is an “E6760,” a modified AMD (AMD) Radeon processor.
Business Section: Investing Ideas
Sales for the Wii U will benefit suppliers, but memory makers may not see much upside. The share price of these companies depends on DRAM pricing. In October 2012, DRAM pricing was still dropping. 4GB DDR modules fell to as low as $16. This is a low not seen since the second half of 2011. Still, investors interested in this segment should look at the following companies:
2. Rambus Inc. (RMBS, Earnings, Analysts, Financials): Engages in the creation, design, development, and licensing of patented innovations, technologies, and architectures to digital electronics products and systems. Market cap at $510.05M, most recent closing price at $4.60.
In the storage space:
3. SanDisk Corp. (SNDK, Earnings, Analysts, Financials): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap at $9.54B
4. Seagate Technology PLC (STX, Earnings, Analysts, Financials): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Market cap at $10.1B
In the chip processing segment:
7. NVIDIA Corporation (NVDA, Earnings, Analysts, Financials): 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 $7.32B
Companies mentioned in this article:
9. Sony Corporation (SNE, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. Market cap at $10.13B
10. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $226.82B
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