Nvidia Too Cheap, Cramer Says; Weisel Also Remains Bullish

Nvidia (NVDA) shares are trading higher on a pair of endorsements for the graphics chips company.

• Last night on Mad Money, Jim Cramer asserted that the stock looks way too cheap, particularly if you back out the company’s $3 a share in cash. On the segment, he spoke with CEO Jen-Hsun Huang, who asserted that the concerns over Europe now afflicting the tech sector will pass, and that fundamentals at the company are strong. Huang said the company will continue to focus on a three-pronged strategy, with visual computing, parallel computing and mobile computing.
• Thomas Weisel Partners analyst Kevin Cassidy this morning repeated his Overweight rating on the stock, noting that the shares this year have “severely underperformed” the broader market and the semiconductor sector. But he thinks the company will continue to benefit from increased IT spending, traction in new markets, increased notebook GPU adoption and eventually a a ramp of the tablet market served by the company’s Tegra chips. He repeats his $23 price target, and advises building positions on any pullback. “In our view, NVDA is in the early stages of a new product cycle across all market segments and all these new products are accretive to current gross margin levels,” he writes.

NVDA is up 28 cents, or 2.4%, to $12.05.