Buy Nvidia (NASDAQ:NVDA) Call Spreads Says Goldman (NYSE:GS)

In a research report Wednesday, Goldman Sachs (NYSE:GS) recommended traders to buy Nvidia (NASDAQ:NVDA) call spreads before the earnings report of the company on February 16.

According to Goldman Sachs' semiconductor analyst, James Schneider, he believes Nvidia will have a blowout quarter, citing Tegra victories in tablets and smartphones offering the strong possibility of estimates being driven higher.

The specific recommendation from Schneider is for the March $25/28 call spread for $0.77.

As far as over the long term, Schneider maintains a "Neutral" rating on Nvidia, citing valuation and low-end discrete GPU given the improving graphics performance of integrated CPU/GPU products.

Nvidia closed Wednesday at $23.29, dropping $0.58, or 2.44 percent.