Shares of graphics card maker Nvidia Corp rose 12 percent in pre-market trade on Friday after the company reported market-beating quarterly results and forecast strong third-quarter revenue on accelerating growth in its mobile business.
Shares of the company leapt $1.63 pre-market to $15.04. They had closed at $13.41 on Thursday on Nasdaq.
However, brokerage Evercore Partners cut its price target on Nvidia stock to $11 from $12, saying it was surprised with the lack of growth of the company's much touted Tegra processors.
Nvidia's Tegra chips, which help speed up Internet browsing and accelerates graphics on tablet devices, were seen to be important for the company's growth after a high profile launch last year.
The management's flattish guidance on Tegra and its appearance of being relatively non-committal to the chips' growth was surprising, Evercore said in a note to clients.
The brokerage maintained its underweight rating on the stock.
(Reporting by Siddharth Cavale in Bangalore; Editing by Unnikrishnan Nair)