Kaufman Bros. analyst Mike Burton this morning launched coverage of the chip maker Nvidia with a Buy rating and $18 target price. The stock closed Wednesday at $13.31.
“We view NVDA as a major beneficiary of the convergence of mobility and computing, and an increasing focus on power efficient processing, which should help the company leverage its core competencies in Visual and Parallel Computing,” he writes in a research note. “While it is going to be a tough fight ahead for NVDA to further penetrate the mobile market with its Tegra product line (due mostly to intense competition), we believe that given the growth and expected size of the smartphone market (we expect 500 million+ units in 2012) coupled with the company building upon current design wins (major wins include Motorola, Samsung and LG) should help to support strong growth rates for the company over the longer term as it benefits (with others) from the convergence of mobile computing, tablets and smartphones.”
NVDA this morning is up 23 cents, or 1.7%, to $13.54.
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