Shares of Nvidia increased more than 11 percent during trading on Wednesday, apparently fueled by confidence in sales projections for the company's chips, which are used in smartphones and tablets.

Reuters reported that Nvidia predicts it will see “strong” sales in 2013. Nvidia projects its 2013 revenue will range from $4.7 to $5.0 billion, well over analysts' projections of $4.45 billion, Reuters said.

Nvidia projects that Tegra, which is used in mobile devices, such as smartphones, will generate about $1 billion in sales during the 2013 fiscal year – also more than the prediction from analysts, Reuters said.

Nvidia CEO Jen-Hsun Huang told Forbes that Android tablets running a new quad-core processor will be offered in 2011, sooner than a product from rivals, Reuters said. That also means devices using the quad-core mobile chip should be available before the winter holiday selling season, according to a report from The Wall Street Journal.

Nvidia claims it holds about 70 percent of the Android tablet market share.

Nvidia’s CEO predicts the company will see growth across its entire graphics processing unit and mobile-processor units. "The future for computing is visual and mobile, and we are well positioned to lead in this new era," Huang said in a statement carried by TechZone360.

But industry analysts cautioned the company’s projection was “too optimistic,” according to Reuters.

Reuters said the analysts point to the “macro environment” and “increased competition” from Intel and Advanced Micro Devices.

"We find it difficult to believe that, in the current economic environment, a company that is 80 percent exposed to consumer spending has meaningful visibility into demand over the next 18 months," Daniel Berenhaum, an analyst at MKM Partners, told Reuters.

Analysts also point to the “dreary economy” and “supply chain concerns” after Japan's earthquake in March, and lower sales of personal computers, Reuters said.

Shares of Nvidia increased to $14.64 in heavy trading on Wednesday, Reuters said.

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