Company Insight: NVIDIA Corporation (NASDAQ:NVDA)

[Fortune] The DOE is spending $425 million on technology to advance analytics for research, defense, climate modeling, and geographic exploration—including two new installations led by IBM. One closely watched list in scientific circles is the Top500 ranking of the world’s faster supercomputers because of the sheer volume of data these room-sized systems are able to process. The list is dominated by technologies in use throughout the United States and focused on data-intensive tasks such as counter-terrorism, basic science research, climate change simulations, or oil and gas exploration. Since last June, however, the Top500 has been led by a system at a Chinese university specializing in defense technology.

The U.S. government is determined to change that within the next three years. Last Friday, the Department of Energy (DOE) disclosed plans to spend $300 million on two new supercomputers that will be “five to seven times more powerful” than systems currently in use. The technologies blessed by the contract—supplied by IBM IBM -0.81% , NVIDIA Corporation (NASDAQ:NVDA) 1.55% , and Mellanox MLNX 0.87% —will be installed at the Oak Ridge National Laboratory and the Lawrence Livermore National Laboratory. The Argonne National Laboratory will also get a new supercomputer, but its supplier hasn’t been announced yet.

There are currently twenty three analysts that we track that cover the stock.  Of those twenty three, eight have a Buy rating, nine have a hold rating and six have a Sell rating.  On a consensus basis this yields a score of 2.09 and a Hold.  The combined price objective of these covering analysts is $20.04, which represents a 18.99% difference to the last closing price.

A recent analyst activity consisted of Zacks Investment Research reiterating their Outperform stance on the company.  Zacks has a price target of $23 which represents an upside of 36.58% from the last closing price.  On the date of the report, the stock closed at $18.92.

Another research firm weighing in recently was Roth Capital who boosted their rating on the stock.  On August 8th Roth Capital boosted their price target on the stock from $22 to $24, or a 42% upside to the current price.  On the day of the report, NVDA shares closed at $19.

NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing company. The company operates through two segments, GPU and Tegra Processors. The GPU segment offers GeForce for consumer desktop and notebook personal computers; Quadro for professional workstations; Tesla for high-performance servers and workstations; and NVIDIA GRID for server graphics solutions. The Tegra Processors segment offers Tegra processors for smartphones, tablets, gaming devices, and other computer devices, such as Windows RT-based devices, set-top boxes, chromebooks, clamshells, and others; Icera baseband processors and radio frequency transceivers for mobile connectivity; Tegra NOTE, a tablet platform based on Tegra 4; Tegra VCM, a Tegra-based vehicle computing module that integrates an automotive computer into a single component; and SHIELD, an android gaming device for digital content in the cloud.

Company Insight: NVIDIA Corporation (NASDAQ:NVDA) was last modified: November 20th, 2014 by Pat Mayfield

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