Nvidia Corporation was raised to a BUY from HOLD rating as higher revenue is expected in its future, according Wedbush Morgan research during its analyst day.
Analyst Patrick Wang said demand, particularly in chipsets Tesla and Tegra will drive the future growth as the company moves forward, and that CPU-GPU co-processing is the future of computing.
Meanwhile, Nvidia Chief Executive Jen-Hsun Huang said at the company's analyst day on Tuesday that the graphics processor will be an equal partner with Intel processors, citing Apple as an early trendsetter.
Wang set a price target of $13, up from $11 for NVIDA. While, UBS upgraded its rating to neutral from sell, to $11.50 price target from $8.00 in line with its fiscal 2010 forecast at -$0.17.
It also expects its annual revenue growth of 10% to boost up its margin by 40bp for the near term and 60bp in the year end.
Recently, Santa Clara, Calif.-based Nvidia Corp posted a fourth quarter revenue was $481.1 million, down from $1.2 billion for the fourth quarter of fiscal 2008. And for the twelve months ended January 25, 2009, revenue was $3.4 billion compared to $4.1 billion for the twelve months ended January 27, 2008.
NVIDIA Shares rose on Wednesday to 27 cents, or 2.45 percent, to $11.28 in afternoon trading