Nvidia (NVDA) Drops But Needham Remains Bullish

Shares of Nvidia (NASDAQ:NVDA) are down today after an uninspiring presentation Tuesday at the company’s analyst day, where there was a lot of talk about where growth would be driven, but no change to the fiscal outlook of the company.

Needham & Co. analyst Rajvindra Gill remains bullish on Nvidia, saying he sees the shares as being “grossly undervalued.”

He added that he sees Nvidia having, at minimum, a 12- to 18-month lead over Texas Instruments (NYSE:TXN) and Qualcomm (NASDAQ:QCOM) with Tegra.

“Our checks indicate meaningful design wins across tablets and smartphones” for the Kal-El chip, noted Gill.

Concerning standalone graphics, he said the “Quadro” chip will generate revenue in the professional graphics market back to “pre-recession revenue levels” by next quarter.

Nvidia was trading at $19.06, down $0.49, or 2.51 percent, as of 1:21 PM EST. Gill Maintains a "Buy" rating on Nvidia with price target of $27.