Expect This Chipmaker to Jump 40% Next Year: Analyst
Shares of graphics chipmaker Nvidia are down almost 20 percent year-to-date. But will the firm see a turnaround in the new year—and should investors get in now?
Arnab Chanda, senior research analyst at Roth Capital has a “buy” rating on Nvidia and has a price target of $20—a 40 percent upside to where the stock is currently trading. Nvidia is also one of Chanda’s top picks for 2011.
“I think [Nvidia] could make more than that—the stock was at $40 in just PC graphics three years ago, so I think it can go a lot higher than $20,” Chanda told CNBC.
Chanda said in the last four years, Nvidia’s R&D (research and development) has gone up 70 percent because the firm was investing in transitioning from a graphics chip to a processing product line.
“So those products are just starting to go into production now, so all that R&D that you spent for four years is now going to start paying off,” he explained.
Chanda also has Atheros as a top pick for 2011.
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CNBC Data Pages:
Advanced Micro Devices
Chanda does not own shares of NVDA.