NVIDIA (NASDAQ:NVDA) EPS Estimates Raised on Improved Execution

While they continue to favor Atheros (Nasdaq:ATHR) or Marvell (Nasdaq:MRVL) in the sector, the improved performance of NVIDIA (NASDAQ:NVDA) has analysts at FBR Capital raising their EPS estimates and price target on the company.

FBR said, "Recent PC checks with the top six notebook ODMs are stable versus prior checks, with 4Q builds set to grow 2% QOQ. For 1Q11, our contacts suggest notebook builds will fall by 1% QOQ, better than typical seasonality (off of a poor base of shipment growth in 4Q10), but consistent with Street expectations."

"Given valuation, we remain more favorable on Atheros or Marvell ), but we note NVDA's improved execution. We maintain our Market Perform rating and raise our calendar 2011 and 2012 EPS estimates (GAAP) from $0.55 to $0.60 and our price target to $14, a 20x target P/E multiple (2011 GAAP), seemingly appropriate given NVIDIA's growth and margin profile."

FBR Capital maintains a "Market Perform" on NVIDIA, which was trading at $14.32, down $0.05, or 0.35 percent, as of 11:07 AM EST. FBR raised their price target on them from $13 to $14 a share.