Financial Analysts Are in Love with Nvidia's Tegra

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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  • nevertell
    I'd bet they're paid off, since Tegra 3 isn't all that great, the performance is good but not great, and the baseband isn't integrated into the SoC.
  • jacobdrj
    Analysts have no technology experience. They hear mobile and they like it. Tegra is better than nothing, but far from a selling point at this stage...
  • Anonymous
    Tegra 3 is the best large cap non-apple chip. Baseband isnt integrated yet, as of now only available as a secondary Icera chip, but integration incoming this spring. Don't understand your comment. What is a better tablet chip, other than the Apple one, which is about on par. Apple has better graphic processing, but worse CPU processing. The apple chip has to push more pixels, so performance on tablet is actually on par or worse.