Nvidia wins big Tesla deal

Article Excerpt

NVIDIA CORP. $72 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 535.0 million; Market cap: $38.5 billion; Price-to-sales ratio: 7.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips. Among other things, those mini circuits make video games more lifelike and run more smoothly. The stock recently hit a new all-time high after electric carmaker Tesla Motors (Nasdaq symbol TSLA) announced that it would use Nvidia’s new Titan processor chips to power its upcoming self-driving cars. This deal should give Nvidia an advantage in a fast-growing field. However, it now trades at 38.9 times this year’s projected earnings of $1.85 a share. Nvidia is a hold. hold…