Needham & Company Maintains a 'Buy' on NVIDIA (NVDA); Kepler Design Wins; Tegra Adoption Continues

June 6, 2012 8:05 AM EDT Send to a Friend
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Price: $20.92 +1.70%

Rating Summary:
    12 Buy, 22 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
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Needham & Company maintains a 'Buy' on NVIDIA (NASDAQ: NVDA) price target of $20.00.

Analyst, Rajvindra S. Gill, said, "NVDA announced its GeForce GTX 680M GPU yesterday as the company’s premier offering on the Kepler graphics architecture. The GPU will be featured in Alienware’s new M17x and M18x gaming laptops, which will be available for purchase in the coming weeks. We believe Kepler demand remains high and is gaining market share over competing AMD (N/R) GPUs. We note third-party blog sites’ suggestion of Kepler’s design win in AAPL’s new MacBooks, which previously featured AMD’s Radeon HD 6750M. Additionally, we believe Tegra is gaining traction in the smartphone and tablet markets, and think it is well positioned for Windows 8 on ARM in CY13. Moreover, we still contend Nvidia’s “breakup” value implies a higher share price. Net cash accounts for ~43% of Nvidia’s market cap. Excluding cash, the market is effectively valuing the GPU,Tegra and PSB segments at 0.61 EV/sales. As a result, we recommend the aggressive accumulation of shares at current levels."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $12.07 yesterday.


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