Shares of chip designer Nvidia
Santa Clara, Calif-based Nvidia's stock jumped 10.4 percent to $24.52 on Monday, bringing gains so far this year to 64 percent, on optimism about its dual-core Tegra mobile chips.
Nvidia's stock could reach $40 if the Tegra chips drive significant market share gains and the company's shares stick to their historical expected earnings multiples, Barron's said, citing an analyst's estimates.
At the Consumer Electronics Show in Las Vegas in early January, the Tegra chips appeared in several new tablets and smartphones running Google's
The first generation of high-end (Android) tablets will all have Nvidia chips in there, Arnab Chanda, an analyst at Roth Capital, told Reuters.
Nvidia made its name designing high-end graphics chips for personal computers. But as competition increased with Intel expanding into its market, the company has pushed into mobile, combining central processors based on ARM Holdings
Validating Nvidia's focus on graphics technology, chip giant Intel
Also this month, Nvidia said it is designing an ARM-based central processor for personal computers, directly challenging Intel in the chip giant's own main market.
(Reporting by Noel Randewich; Editing by Tim Dobbyn)