Financial Analysts Are in Love with Nvidia's Tegra

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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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Wolfgang Gruener
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12 Comments Comment from the forums
  • 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.
    Reply
  • 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...
    Reply
  • 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.
    Reply
  • LukeCWM
    He expects Nvidia shares in a valuation range of $15.50 to $18.50, up from $14.05 at market close today.
    But the market hasn't closed today yet... *starts trading futures*
    Reply
  • rebel1280
    haha how interesting that Nvidia CPU is better than Apples but their VIDEO is worse, less powerful? Blows my mind :|
    Reply
  • rahulkadukar
    Snapdragon S4 Quad core (Adreno 320) > Tegra 3
    Reply
  • Tegra is a bit of a bad joke... The cores are exceptionally weak compared to Samsung, Qualcomm, and pretty much anybody else, and even the graphics are mediocre. That tech-illiterate analyst must have been wowed by the OMG4CORES! aspect of it.
    Reply
  • mayankleoboy1
    A 40nm 4+1 tegra3 has the same or only slightly lesser battery life than a 28nm Dual core kraitS4. Plus, the gpu is better than mali 400 andadreno225.

    That is great engineering in all sense of the word.

    Reply
  • I dont understand when people say Tegra3 sucks. Firstly Tegra3 is almost a year old. Secondly it is built on a 40nm process where as all competitor chips are built at either 28nm or 32nm and yet Tegra manages to hold its own both in terms of power and battery life.

    People should realize that u get a significant increase in perf and battery life simply by changing the process from 40 to 32/28 nm
    Reply
  • darkchazz
    westernnate 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.Not on par... No Tegra3 tablet in the market at the moment can do faster GFX even against the 1+ year old ipad2(1024×768) with the dual core SGX543.
    You know their geforce GPU sucks when even their own tegra games lag a bit and some even default to a low resolution just to get more fps (See riptide,shine runner, GTA3).
    Even the Mali400 in the latest samsung devices completely leave the geforce gpu in the dust.

    What's the point of more cores when there are ZERO apps making use of them. nvidia should've went with faster graphics.. but instead the just rely on their marketing machine to fool people: 12 COAR GPU!!!!
    Also 40nm fail when you competitors are 32nm and 28nm...

    http://3.bp.blogspot.com/-xbWQbt6wZ2A/UAkURv_rH_I/AAAAAAAAB8Q/FwNqdE7rgUo/s1600/fu.jpg
    Reply