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Nvidia Pullback to $14 Presents Opportunity: Terranova

“It’s just the guidance,” says trader Joe Terranova. “It’s not what the Street had hoped for.”

That was the Fast Money pro’s knee-jerk reaction to the pullback in Nvidia in extended trade, after the company said revenue in its fiscal first quarter would be between $900 million and $930 million compared with analysts' average forecast of $944.63 million.

Nvidia also guided for an April-quarter gross margin forecast of 49.5 percent, plus or minus 1 percentage point, less than the 52.1 percent expected by analysts.

However, this may be a case of be greedy when others are fearful. “If it pulls back to $14 I’d look at it from the long side,” adds Terranova.

The Fast Money Liquidator is likely bullish due to Nvidia's long-term plan to move beyond designing graphics chips for PCs and into mobile devices.

Nvidia has said it expects revenues from its new Tegra 3 processor to hit $1 billion in 2012, with most growth in the second half of the year.

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Trader disclosure: On Feb 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long HPQ; Terranova is long IBM; Terranova is long MCD; Terranova is long SWN; Terranova is long EMC; Terranova is long OXY; Terranova is long SBUX; Terranova is long LQD; Terranova is long UNG puts; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is short IBM calls; Finerman is long HPQ; Finerman is long LIZ; Finerman is long NTAP; Finerman is long PACD; Kelly is long GLD; Kelly is long TLT; Kelly is long T-Notes futures; Kelly is short Yen; Kelly is short Swiss Franc; Kelly is short Eurostoxx50; Seymour is long AAPL; Seymour is long INTC; Seymour is long SBUX

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