When Will The Tegra Opportunity Materialize? An Outlook On 2014 And Beyond
- Nvidia's stable, "cash-cow" GPU business won't move the stock price, while its potentially high-growth System-on-a-Chip business (Tegra) might.
- Tegra chips are technologically very competitive, but have so far failed to gain a significant commercial foothold in consumer electronics.
- Based on announced smartphone and tablet releases, 2014 will be another disappointing year for Tegra implementation.
- The Tegra opportunity is still real, but will take time to realize, requiring investors to be patient.
- Based on today's price of $18.31, my target range for NVDA in 18 months is $20-$23, with a base case of $21.