NVIDIA shares are up 4.25 percent to $17.64 following some bullish comments by Hans Mosesmann, an analyst for Raymond James. Mosesmann notes chip supplies are tighter than usual and believes Wall Street is underestimating the graphics chip maker.
Nvidia "remains a controversial name in the near term," Hans Mosesmann wrote in a note to investors. He said the stock "presents an opportunity as the Street appears to significantly underestimate the momentum in new products for 2010" as well as "upward movement in gross margins."
In his note Tuesday, Mosesmann said Nvidia expects that demand will continue to outstrip supply, with customers holding enough inventory to last about five weeks compared with the normal 10 to 12 weeks.