New graphics chips range lifts Imagination

Oliver Smith
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IMAGINATION Technologies led the FTSE 250 yesterday morning after the British technology giant announced a “disruptive” new line of graphics processors for smartphones.

Shares were also boosted by UBS, which said that Imagination was “down but not out” in a note that upgraded the stock from neutral to a buy. UBS analyst David Mulholland said: “We believe the low stickiness in graphics is now an opportunity more than a risk.”

Shares in the graphics and microprocessor maker, which counts Apple among its customers, leapt as much as 12 per cent after the announcement. Shares ended up 10.5 per cent at 180.70p.

Imagination said its new Wizard platform would bring, “astonishing realism and performance at mobile power budgets”.

As well as mobile platforms Imagination listed products that could benefit, including games consoles and servers.

Chief executive Hossein Yassaie said: “Imagination’s highly-efficient PowerVR GPUs have played a key role in driving the creation of entirely new categories of mobile devices. Now we are changing the game again by bringing the next level of realism to mobile and consumer devices.”