Nvidia's Tegra 2 Dual Core Mobile Chips Boost BrandBy Reuters | Print
Nvidia's Tegra 2 dual core mobile chips have been the star of the show in the tablet market. Their graphics processing power have given the company a lead against the competition including Qualcomm and Texas Instruments.
(Reuters) - Nvidia shares soared 15 percent on Wednesday, their biggest one-day rise in over two years, as investors bet the company's new chips would win it a major stake in future tablets and smartphones.
The rise in Nvidia's stock brought its gain since the company's debut last week of its new Tegra 2 dual-core mobile chips to about 50 percent.
Wedbush analyst Patrick Wang said the stock was "trading purely on momentum at this point."
He said he had been taking calls from clients to help them estimate how large an impact Nvidia's mobile chips could make on the market.
Nvidia's new chips, boasting powerful graphics processing horsepower, give it a lead but competition is expected to increase from Qualcomm and Texas Instruments.
"Look for all of Nvidia's competitors to come out and throw their hats in as well," Wang said. "You've got very large, powerful technology companies that are all going for the same market."
Micron Technology Inc shares rose 7.1 percent to $9.34 after investor relations vice president Kipp Bedard told investors at a Needham & Company conference that a downturn in prices for DRAM memory chips was turning around quickly.
Shares of Cisco, Dell and other technology heavyweights also rose ahead of bellwether Intel's kick-off of the technology sector's quarterly earnings season on Thursday.
Major technology companies are expected to keep up sales and profit growth in 2011, although concerns about economic growth in the United States and Europe could temper results.