2011 was a year of significant developments for Nvidia, accompanied by some wide swings in its stock price.
While the company made some big announcements on the product development side, it also had to face the aftermath of product advancements from Intel and Advanced Micro Devices.
This past year Nvidia also began its serious push into mobile computing and showed ambitions of becoming much more than a graphics chip maker.
Our price estimate for Nvidia stands at $20.91, implying a premium of about 50% to the market price.
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Nvidia’s Ambitions Expanded Beyond Graphics
Nvidia is primarily known for its GPU technology and its graphics cards are widely used in desktops and notebooks all over the world. However, with the announcement of Project Denver and the launch of the world’s first dual-core mobile application processors Tegra 2 early in 2011, Nvidia made it clear that it has ambitions to expand well beyond graphics.
Project Denver refers to Nvidia’s project under which it will build high-performance ARM architecture based CPU cores that will support regular desktop and notebook PCs as well as servers and super computers (see article Can Project Denver Justify Nvidia’s Stock Run?). These CPUs could be available around 2013.
Nvidia aimed Tegra 2 at the fast growing smartphone and tablet market and recently launched Tegra 3. This launch has accelerated Nvidia’s growth in mobile computing chip revenues. In addition to this, Nvidia bought baseband processor maker Icera, in its quest of further expanding its product portfolio (see article Nvidia Acquires Icera as Baseband Chipset Market Heats Up).