Shares of graphics chip maker Nvidia Corp. (NASDAQ: NVDA) traded at an all time high on Thursday after the company gave an upbeat outlook for the near-term and it introduced a new high-end desktop product.
Shares of the Santa Clara, Calif.-based company jumped $2.40, or 6.1 percent to $42.48 on the Nasdaq Stock Market, surpassing its 52 week high of $40.20 set the day earlier.
The company lifted its gross margins target to 47 percent, and said it is on track to meet 50 percent gross margins by fiscal 2009. This morning Deutsche Bank raised its price target on Nvidia to $54, citing higher revenue and margins.
At an analystsâ€™ meeting on Wednesday, the semiconductor company introduced a new chip called Tesla, which is aimed at intensive computing applications in professional fields.
Nvidia says the new solution would compliment existing desktop platforms, augmenting consumer computers with computing power typical found in super computers.
Today's science is no longer confined to the laboratory; scientists employ computer simulations before a single physical experiment is performed, said Jen-Hsun Huang, president and CEO of Nvidia. This fundamental transition to computational methods is forging a new path for discoveries in science and engineering.
The chip includes a graphics processor consisting of a computer motherboard and software tools. Nvidia said the chip would address a market that could be worth $6 billion by 2010.
One analyst showed tempered enthusiasm for the product, however.
We are not sure the market is ready for a Tesla solution, nor that Nvidia is ready to roll out the solution in any meaningful volume this year, Doug Freedman of American Technology Research told clients.
We will await adoption of Tesla before incorporating it into our numbers, but believe in the long run this market will drive the next leg of growth for the [graphics processor].