June 21 (Bloomberg) -- Nvidia Corp. shares rose 7.8 percent after analysts raised their price targets for the stock, saying profit and sales growth will accelerate as the graphics-chip maker enters new markets.

Lehman Brothers analyst Tim Luke raised his rating on the stock to ``overweight'' from ``equal weight'' and said the share price may climb to $47 in the next year. Deutsche Bank analyst Arnab Chanda raised his target to $54 from $48.

Nvidia will adapt its chips so they'll help speed up computer functions other than graphics processing, Chief Executive Officer Jen Hsun Huan said yesterday at a meeting in Santa Clara, California. The company also may lure more customers away from rival Advanced Micro Devices Inc., Luke said.

``Nvidia is likely to continue to gain share in the graphics processor segment enabled by its product positioning when compared to its competitor,'' Luke said in a note today. ``Nearer term, improved unit shipments of motherboards and notebooks in the second half of 2007 should benefit'' the company.

The shares climbed $3.12 to $42.98 a of 4 p.m. New York time in Nasdaq Stock Market trading. They've risen 16 percent this year.

The company reported last month that profit in its first quarter ended April 29 climbed 44 percent on sales to laptop- computer makers.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

Last Updated: June 21, 2007 16:01 EDT