The stock markets started the day on a big positive note here in the UK thanks to the 100 billion Euro Spanish bank bailout news over the weekend. Now the markets have opened in the US we have news of a tech stocks rally with NVIDIA leading the charge. It’s currently up 3.3 per cent and even poor Facebook seem to be having a good day at 2.8 per cent up as I write.
NVIDIA is the top performer so far today on the NASDAQ and S&P 500. The company has had a lot of good news-flow recently; components from NVIDIA feature in many of the new and upcoming fantastic new products we highlighted at Computex last week.
Broker UBS updated its rating of NVIDIA at the weekend from neutral to buy. The price target of $15.50 was maintained (currently around $12.50). Reasons given by UBS analysts for the upgrade are as follows;
- Stock is down 25 per cent since February due to market pullback, not results or news about NVIDIA’s operations.
- Kepler graphics are thought to be a winning generation of GPUs
- NVIDIA’s WoA platform is looking promising as a market leader. NVIDIA’s video of Windows on ARM shows its enthusiasm for the platform.
- NVIDIA’s professional workstation solutions maintain steady revenues even when consumer markets are volatile.
Those look to be pretty decent reasons for backing NVIDIA, unless there are further pullbacks which could lock you in or lose you money. However with all the upcoming great products for Windows 8, Ultrabooks, tablets and smartphones, NVIDIA has chips that sit inside Intel promoted products like Ultrabooks and also compete with Intel (Wintel vs WoA). That makes NVIDIA looks like a winner either way. No investment advice intended. Also let’s see what AMD can bring to the table with new notebooks and tablets at the time of the Windows 8 launch.