Shares of Nvidia Corp. (NASDAQ:NVDA) were hopping today on news JMP Securities upgraded the stock, citing a stronger outlook in the mobile computing market for the company.
JMP analyst Alex Gauna drew attention to Nvidia’s Tegra mobile computing chip as strengthening into a major player in the market for smartphones and tablet PCs.
Nvidia and its “ARM-based Android (NASDAQ:GOOG) and Windows (NASDAQ:MSFT) initiatives are in a position to re-accelerate financial performance in coming quarters and years,” Gauna noted.
“We believe Nvidia Tegra technology will continue to be in the lead reference designs for new Android operating systems," he wrote in a note to clients.
The Tegra processors produced by Nvidia are also in popular tablets and smart phones including those made by such companies as Motorola Mobility (MMI) and Samsung.
Gauna also noted that the proposed merger between AT&T Inc. (T) and the Deutsche Telekom-owned T-Mobile USA could work to the benefit of Nvidia, saying “it is likely to ignite subscriber retention/acquisition campaigns.”
“Nvidia’s position as the high-performance multi-core Apps processing leader will make it one of the cornerstones of these marketing campaigns,” Gauna said, adding that Nvidia is “largely agnostic to share shift among the carriers.”
Nvidia was trading at $19.50, up $0.87, or 4.64 percent, as of 2:49 PM EDT.
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