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Nvidia Catches a Bid

An upgrade follows a downgrade on Tuesday.

Nvidia's

(NVDA) - Get NVIDIA Corporation Report

stock rode the upswing of a two-day see-saw, as Wall Street analysts proffered contradictory takes on the graphic chipmaker's near-term fortunes.

Shares of Nvidia were gaining 8.4%, or $2.38, to $30.68 Wednesday following a bullish note from Friedman Billings Ramsey analyst Chris Caso, who reiterated his outperform rating and raised his price target to $34, based on potential for upside to the company's 2007 financial results. Friedman Bilings makes a market in Nvidia shares.

The average analyst expectation calls for Nvidia to earn $1.28 a share on sales of $2.9 billion in 2007, according to Thomson First Call.

Caso believes Nvidia should easily meet these numbers, with room for upside, due to stabilizing PC unit build rates, the growth potential of various products that use Nvidia chips and new business that Nvidia might steal from rival

ATI Tech

(ATYT)

, whose product roadmap is now in question following its announced merger with

Advanced Micro Devices

TheStreet Recommends

(AMD) - Get Advanced Micro Devices, Inc. Report

.

That's decidedly more bullish than the view of Pacific Growth Equities analyst Satya Chillara, who downgraded Nvidia to neutral on Tuesday, pushing Nvidia shares down more than 3% at one point.

Chillara wrote that the notion that Nvidia will garner increasing business supplying chipsets to

Intel

(INTC) - Get Intel Corporation Report

, which has previously bought a good deal of chipsets from ATI, was overly optimistic, particularly as Nvidia does not offer the low-end chipsets meant for Intel platforms.

He also cited potential weakness with

Sony's

(SNE) - Get Sony Corp. Report

PlayStation 3 that Nvidia supplies chips for in paring back his fourth-quarter revenue and earnings figures for Nvidia. Pacific Growth makes a market in shares of Nvidia and ATI.