push into mobileBy 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.
Nvidia, based in Santa Clara, California made its name designing high-end graphics chips for PCs.
But as competition increased with Advanced Micro Devices Inc and Intel expanding into its market, Nvidia's co-founder and Chief Executive Jen-Hsun Huang pushed into mobile, combining central processors based on ARM Holdings Plc architecture with Nvidia's own graphics technology.
Wednesday's stock rise was Nvidia's largest in a single session since October 2008, and its shares have doubled since October 2010.
Interest in Nvidia was high in the options market, as well, with more than 29,000 call options with a January strike price of $22.50 trading on Wednesday, according to Caitlin Duffy, equity options analyst at Interactive Brokers.
"The majority of the calls traded on the ask, indicating buyers are dominating volume at that strike today," said Duffy. Heavy activity was also seen at the $24 and $25 strike prices, she said. Nvidia's shares closed at $23.35.