Nvidia stock jumps on hopes for mobile chip

By Alex Dobuzinskis LOS ANGELES, Nov 12 (Reuters) - Nvidia Corp shares jumped 6 percent on Friday after several analysts raised their price targets on expectations the graphics chipmaker's new Tegra chips for mobile devices will finally gain traction among consumers. The rally comes a day after Nvidia forecast better-than-expected 3 to 5 percent sales growth this quarter. Among the firms which raised their price targets for Nvidia were Raymond James, Stifel Nicolaus, Barclays and Canaccord Genuity. Raymond James raised its target to $19 from $14. Nvidia leapt as much as 8.5 percent on Nasdaq. It was up 5.7 percent at $13.34 early Friday afternoon. Before Friday's rally, the stock had fallen 32 percent so far this year as investors worried about Nvidia's efforts to popularize Tegra chips. Chief Executive Jen-Hsun Huang told analysts on Thursday he was confident the company's work on tablet computers, including a partnership with Google Inc on an Android-based tablet, will bear fruit in coming quarters. Nvidia expects mobile devices, such as tablets, using the Android operating system and Nvidia's Tegra chips will be released early next year. "What the (Nvidia) share price movement today really is about is 'How do I play tablets next year?' and Nvidia is a good way to do that," said Gleacher & Co analyst Doug Freedman. His firm raised Nvidia's stock price target to $13 from $11, but Freedman said there is still reason for scepticism. He noted that at the Consumer Electronics Show in January, Nvidia also touted its work with tablet makers, but that failed to materialize into a sizable role for Nvidia in the tablet roll-outs of 2010. "I'm sort of waiting for their products to be successful in the marketplace," Freedman said. "Investors are buying now and will measure later." Other technology shares fell on Friday in an overall weaker market, with Apple Inc down 3.1 percent, Dell Inc down 3.6 percent and Advanced Micro Devices Inc down nearly 1 percent. (Reporting by Alex Dobuzinskis: Editing by Richard Chang) Keywords: NVIDIA/SHARES (alex.dobuzinskis@thomsonreuters.com; 1 213-955-6781) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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