Kaufman Bros upgraded Marvell Technology Group Ltd and Nvidia Corp to buy from hold and said it expects the chipmakers to benefit from an improving PC demand market.

With our incrementally positive computing demand outlook yesterday, we see investment opportunity in semiconductor companies levered to the PC supply chain, analyst Suji De Silva said in a note to clients.

De Silva, who raised his price target on the shares of Marvell to $25 from $20, said he expects the company to see continued strong growth in its storage semiconductor business.

We expect Marvell to begin to realize benefits from its efforts to diversify outside its core storage business, De Silva added.

Marvell's chips are used in everything from hard drives to smartphones such as Research in Motion Ltd's (RIM.TO) BlackBerry and communications networks. [ID:nN27214703]

De Silva who raised his price target on shares of Nvidia to $22 from $14, said it expects a continued recovery in discrete graphical processing unit (GPU) sales, to benefit the graphics chipmaker.

We also feel the recent de-emphasis by competitor Intel of its discrete graphics solution will enable NVDA to better participate on Intel-based platforms going forward, De Silva added.

De Silva said he expects Nvidia's professional solutions and consumer products segments to be main drivers as 2010 progresses.

Nvidia's professional solutions business accounted for 20 percent of fiscal year 2009 revenue while the consumer products segment contributed about 4 percent to total revenue for the year.

Shares of Marvell were at $20.60, up 2 percent, in pre-market trading. Marvel shares had closed at $20.26 while Nvidia shares had closed at $18.02 Tuesday on Nasdaq.

Electronics Intel