Nvidia appears to be regaining trust from analysts - not so much because of its Kepler discrete graphics cards, but a general sentiment that Tegra 3 will succeed and drive revenues.
An analyst note published by Wells Fargo chip analyst David Wong discusses Nvidia's Nexus 7 design win as well as the upside potential of Windows RT for the company.
Barron's quoted Wong's interpretation of Nvidia's business, in which the analyst especially notes "Nvidia’s graphics expertise as a potential competitive strength in applications processors, and its lack of any history in communications chips (baseband or connectivity chips) to be a weakness." He concluded that Nvidia will have "more opportunity in the tablet market than in the smartphone market." He expects Nvidia shares in a valuation range of $15.50 to $18.50, up from $14.05 at market close today. Wong's estimate puts Nvidia at a similar level as the company traded in mid-2011.
FBR, Thinkequity, Wedbush, BMO, Susquehanna, RBC, Deutsche Bank, Citigroup, UBS, Jefferies, and Barclays have listed their price targets for Nvidia as well, with some analysts believing that Nvidia's stock could hit $20. As a reference, Nvidia's highest valuation so far in October 2007, when the stock hit $37.39.
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