Is Cash Rich Nvidia Finally Ready To Soar?

| About: NVIDIA Corporation (NVDA)

That is the question long time Nvidia (NASDAQ:NVDA) holders are asking themselves. After several false starts, I believe the answer to that question is finally should be "Yes" in the near term.

Possible catalysts for Nvidia:

  • Consensus estimates have risen over the past month for both FY2012 and FY2012.
  • Google's (NASDAQ:GOOG) expected tablet should include Nvidia's dual-quad Tegra 3 line.
  • The stock was initiated as a "Buy" at Cantor Fitzgerald in April.
  • The company might get a boost from a recent deal with cloud gaming company, Gaikai.

Four additional reasons to pick up Nvidia at under $13 a share:

  • The company has $3B in net cash (around $5 a share) on its balance sheet or some 35% of market capitalization.
  • The stock is selling near the bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
  • It is 30% below the median analysts' price target of $16.25 a share by the 30 analysts that cover the stock.
  • The stock has solid technical support right under the current price (See Chart).

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Disclosure: I am long NVDA.