Financial Analysts Are in Love with Nvidia's Tegra
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.
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.